World economy seen recovering by mid-2020: BOJ Kuroda

November 6, 2019

Nagoya--Bank of Japan Governor Haruhiko Kuroda on Tuesday predicted that the global economy will recover in the first half or around the middle of next year.

His remark shows the central bank expects that the global economic recovery will start six months later than previously thought, mainly due to the impact of the U.S.-China trade war.

"If more aggressive fiscal policy measures are taken, their effects would be even greater if combined with monetary policy," Kuroda told a press conference in the central city of Nagoya.

The government plans to put together economic stimulus measures to address problems such as damage from recent deadly typhoons Faxai and Hagibis.

Some market players speculate the BOJ will ease its monetary policy when the government announces the expected fiscal measures.

But Kuroda said, "We are not considering timing monetary policy action to coincide with (fiscal measures)."

On monetary policy, Kuroda said the BOJ has clarified its tilt toward monetary easing in its new monetary policy forward guidance released after a Policy Board meeting last week.

"It is still necessary to maintain massive monetary policy easing measures," Kuroda added. Jiji Press