The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters
The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters

Japan must ‘fix leaking coronavirus faucet’ before addressing economy as outbreak spreads

  • Japan’s economy already contracted in the fourth quarter of 2019 due to a sales tax increase in October with the government drafting a record budget for 2020
  • Japanese factories depend on Chinese-made components, while retailers depend on big-spending Chinese tourists, both of which have been disrupted by the outbreak

Topic |   Coronavirus pandemic
The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters
The Bank of Japan, the nation’s central bank, also has only limited scope for expanding monetary stimulus, since its highly controversial negative interest rate policy cuts profit margins for lenders and income for savers. Photo: Reuters
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