Kuroda Warns of Downside Risks from Overseas Economies

December 26, 2018

Tokyo--Bank of Japan Governor Haruhiko Kuroda said Wednesday that more attention needs to be paid to downside economic risks from overseas factors.

"Downside risks mainly regarding overseas economies have come to warrant further attention," Kuroda said in a speech in Tokyo, apparently referring to a U.S.-China trade fight and a global stock rout.

Uncertainties about developments in overseas economies "have recently been growing," he said.

Specifically referring to the U.S.-China trade dispute, Kuroda said that depending on its future developments, "its negative impact "could be amplified through a deterioration in business sentiment and instability in financial markets."

He said the recent stock market instability can be attributable to changes in the perception of risk factors surrounding the global economy.

Kuroda reiterated that the Japanese central bank maintain its massive monetary easing policy while carefully looking at its negative effects such as an impact on bank earnings.

"In order to strengthen the sustainability and durability of this powerful monetary easing, the side effects of the policy also warrant attention," he said. Jiji Press