Bank of Japan discusses risks from supply constraints, slowdown in China: September summary

Tokyo — The Bank of Japan (BOJ) policymakers in September said in a monthly rate review on Friday that China’s growth slowed, semiconductor shortages, and rising economic risks due to factory closures in Southeast Asia. The summary of is shown.

This heightened external risk could impact the BOJ’s new quarterly growth forecast scheduled for the next policy-making meeting, October 27-28.

“Exports and production continue to grow, but we need to closely monitor how chip shortages and turmoil in Southeast Asian parts factories affect fixed investment and corporate funding.

“There are signs that the Chinese economy is slowing, even though the global economy continues to recover as a trend,” according to another opinion presented in the summary.

Most policy makers maintained the view that the economy was heading for a gradual recovery, but was temporarily hit by coronavirus pandemic supply constraints and continued weakness in retailers’ sentiment. He showed the view that he would receive it.

“Even if the economy emerges from the pandemic downturn and begins to normalize, it is important to maintain a combination of (expanding) fiscal and monetary policy,” said one board member.

At the September 21-22 meeting, the Bank of Japan stabilized monetary policy, but downgraded its export and output valuations, reflecting the growing impact of factory closures and supply constraints in Asia.

Reika Kihara