BoJ Governor Haruhiko Kuroda told the parliament that there could be surge in credit costs if the coronavirus pandemic lasts longer than expected. But for now, the risk is low.
“If it takes longer than expected to contain the virus at home and abroad, that could hurt the economy and push up credit costs for financial institutions,” Kuroda said.
“The risk of this happening now isn’t big. But it’s something we need to be vigilant about. We’ll closely work with the Financial Services Agency on this matter.”
