In the minutes of BoJ’s March 16 meeting, members agreed there had been “significant uncertainties” over the coronavirus outbreak, “over the size and the persistence” of the economic impact. One member warned that the impact could be “significant and not just temporary”. One member said the downturn could be “serious and prolonged”., and it was “not easy to make up for the lost services consumption”.
Few members also said it’s “uncertain whether the economy would recover strongly after COVID-19 receded”, as economic activity had already shown some weakness due to sales tax hike and natural disasters.
Members “concurred” that downside risks to economic activity and prices “seemed to have been increasing”. They also concurred that outlook for prices was likely to be “somewhat weak for the time being”. But some members said there was a “greater possibility that the momentum toward achieving the price stability target would be lost.”
