In the post meeting press conference, BoJ Governor Haruhiko Kuroda said the recent slump in consumption was “in a way unexpected”. But he’s still optimistic on consumption outlook. He added that the decline was not because households lacked income, but more due to the pandemic keeping them from boosting spending. He added, “as the pandemic subsided, consumption is expected to strengthen.”
Kuroda also said he expected “external demand to remain solid” and there is no need to project a “clear slowdown” in US and China growth. He added that actual economic indicators, consumption and output were growing very steadily in the US. The woes of Evergrande is see as “purely” and individual company’s issue, and that of the real estate sector.
