BOJ’s Adachi warns about risk of increase in corporate bankruptcies, business closures

The Bank of Japan (BOJ) monetary policy board member Seiji Adachi warns about the negative impact of the COVID-19 pandemic on the Japanese corporates while supporting the case for easy monetary policy.

Key quotes

“Monetary policy has a bigger role to play in offering a safety net to those affected by COVID-19, rather than directly supporting structural reforms.”

“Maintaining accommodative monetary policy will help normalize economic activity, achieve BOJ’s price target in medium- to long-term horizon.

“No big problem seen in corporate funding now but outlook highly uncertain.”

“If the pace of economic recovery is much slower than expected, cannot rule out the risk of an increase in corporate bankruptcies, business closures.”