The Bank of Japan (BOJ) board member Toyoaki Nakamura is back on the wires now, via Reuters, making additional comments on the economic outlook amidst escalating COVID-19 concerns.
Key quotes
Rise in covid infection cases outpacing what we expected in July.
The economy likely to remain under downward pressure from pandemic for time being.
Japan's economy likely to recover if vaccinations proceed, medical situation is improved.
Must be vigilant to downside risks but don't see economy falling off the cliff.
Pent-up demand for service consumption may not heighten until around or after year-end holidays, instead of during summer as initially expected.
Climate change has big impact on economy, inflation.
Closures in southeast Asian chip factories due to pandemic may have lasting impact and are among uncertainties over global economy.
Chip shortage may not be fixed for rest of this year.
BOJ may be able to buy green bonds in future if clearer taxonomy emerges.
Market reaction
USD/JPY is trading at 109.74, gaining 0.12% on the day.
