BOJ policymaker warns of uncertain recovery, pins hopes on pent-up demand

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A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020. REUTERS/Kim Kyung-Hoon

  • Japan’s economy to recover as pandemic impact fades – Nakamura
  • Outlook highly uncertain due to resurgence in infections
  • Consumption, growth may get boost from pent-up demand – Nakamura

TOKYO, Aug 25 (Reuters) – Bank of Japan board member Toyoaki Nakamura warned of risks to the economic outlook from a recent resurgence in COVID-19 infections, but signalled hope that consumption will get a boost once households feel safe to start spending.

Nakamura said the world’s third-largest economy is expected to recover as the pandemic’s impact fades, pointing to the boost to growth from robust global demand and a recovery in capital expenditure.

The outlook was “highly uncertain” with risks skewed to the downside, the former corporate executive said, as state of emergency curbs to combat the…

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