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The Bank of Japan will not hesitate to take additional easing measures if required as the novel coronavirus, or Covid-19, depressed global activity, Governor Haruhiko Kuroda said on Tuesday.
Japan's economy has been in an increasingly severe situation due to the impact of the spread of Covid-19 at home and abroad, Kuroda said in a semi-annual testimony to parliament.
As the impact of the spread wanes, Japan's economy is likely to improve. The annual rate of change in consumer prices is expected to increase gradually, he added.
However, the outlook for economic activity and prices is extremely unclear, he said.
The BoJ last week introduced a new lending program worth about JPY 30 trillion to help financing small and medium-sized firms struggling to operate.
