TOKYO: Bank of Japan (BOJ) policymakers hoped that accelerating coronavirus vaccinations would prop up the economy, but saw any inflationary pressures as subdued given the fragile recovery, a summary of their debate at a June 17-18 meeting released on Monday showed.
Japan has only recently emerged from a fourth wave of infections. A decline in the pace of new cases and a pick-up in vaccinations prompted authorities to ease a state of emergency in Tokyo and eight other prefectures on June 20, report agencies.“A positive economic cycle is kicking off in Japan due to progress made in vaccinations,” one of the nine board members was quoted as saying.
At the June meeting, the BOJ kept monetary policy steady and unveiled a plan to boost funding for fighting climate change to be rolled out by the end of this year.
“While uncertain and patchy, progress in vaccinations has made the global economic recovery clearer. Japan hopefully will see something similar happen,” another opinion showed.