- A global recession would put big downward pressure on prices
- So, BOJ will have to keep easy policy in such an event
- If overseas growth rebounds and pushes up domestic prices, we will of course move to a phase of gauging the timing of a policy shift
As for any changes in July, Adachi says that he finds it hard personally to make a strong call on the inflation outlook ahead of the meeting. Adding that the central bank fears any premature policy shift would put Japan back into deflation territory. That certainly doesn't sound convincing as the can continues to get kicked down the road under the Ueda regime.
