BOJ policymakers debated risk of return to deflation at June meeting

A few Bank of Japan policymakers warned there was a risk the country might slip back into deflation if the coronavirus pandemic led to more bankruptcies, minutes of the central bank’s June rate review showed on Monday.

With the impact of COVID-19 likely to last for a prolonged period, more companies could face the risk of insolvency even if they received immediate liquidity support, some on the BOJ’s nine-member board were quoted as saying.

At the June 15-16 meeting, the BOJ kept monetary policy steady and maintained its view the economy will gradually recover as the pandemic subsides.

https://www.reuters.com/article/japan-economy-boj/boj-policymakers-debated-risk-of-return-to-deflation-at-june-meeting-minutes-idUST9N2DM00R