Therefore, the Bank decided to seize this occasion and further enhance monetary easing to better ensure the return of the Japanese economy to sustainable growth with price stability. As explained above, I believe this action also demonstrates the Bank’s determination to implement its monetary policy commitment.
Against this background, new wage negotiations may lead to weaker outcomes, further entrenching weak inflation dynamics. For as long as the number of COVID-19 cases continues to rise across Europe and new restrictions are introduced, it is hard to envisage a strong rebound in consumer sentiment and consumption.