By Leika Kihara

TOKYO, Sept 24 (Reuters)Some Bank of Japan board members warned a resurgence in the coronavirus pandemic could delay an economic recovery and destabilise its banking system by pushing more companies under, minutes from the bank’s July rate review showed on Thursday.

While they agreed on the need to ramp up stimulus if needed, the BOJ policymakers said the hit to financial institutions’ profits from the pandemic could erode their ability to boost lend, the minutes showed.

“Infection numbers are increasing at a faster pace globally, so we need to be on alert of the possibility of a re-insurgence including in Japan,” a few members were quoted as saying.

“If infection numbers rise again, the timing of an economic recovery will be delayed,” one of them said. The damage from the pandemic, if prolonged, could lead to job losses, hurt household income and cool consumption,

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By Leika Kihara and Takahiko Wada

TOKYO (Reuters) – The Bank of Japan is expected to offer a brighter view next week on the economy, output and exports than in July to signal that they are starting to recover from the devastating impact of the coronavirus pandemic, sources familiar with its thinking said.

The optimism would back up the government’s view that its massive stimulus has helped cushion the blow from COVID-19, at a time when its top spokesman Yoshihide Suga is eyeing a landslide victory in a ruling party election to become next prime minister.

But the BOJ will warn at its policy review that any recovery will be modest and bound with uncertainty, as fears over a renewed spike in infections and fragile global demand weigh on household and corporate spending, the sources said.

“It’s clear the economy is bouncing back from a severe downturn in April-June, which

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By Leika Kihara

TOKYO (Reuters) – The Bank of Japan (BOJ) may need to pay more attention to job and household income in guiding monetary policy, deputy governor Masazumi Wakatabe said, as the coronavirus pandemic pushes the economy deeper into recession.

In an online briefing on Wednesday, Wakatabe said there were many lessons to learn from the U.S. Federal Reserve’s new policy strategy that focuses more on creating jobs and boosting household income.

“Personally, I feel there is room to consider the idea, voiced by some people, that monetary policy should focus more on job and income conditions,” he said.

“The BOJ doesn’t need to directly set them as targets. But it can take job and income conditions more into account in debating policy.”

The BOJ is mandated by law to achieve price and financial system stability, but does not have a target on jobs growth.

A few academics have

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(Bloomberg) — Japanese equities and the yen shook Friday on news that Prime Minister Shinzo Abe is resigning, but economists said his departure is unlikely to trigger changes in Bank of Japan policy.

One reason is that BOJ Governor Haruhiko Kuroda, the architect of the bank’s massive easing policy, isn’t likely to follow Abe in stepping down before his term is up, in April 2023. The pandemic has also made it even more difficult for the bank to contemplate unwinding its bond purchases or lifting rates that have been in negative territory for years.

“There’ll be no impact on monetary policy,”’ said economist Masamichi Adachi at UBS Securities in Tokyo. “If it did change, it would make you reassess the relationship between the BOJ and the government,” he said, stressing that the bank is likely to protect its independence.

Japan’s Longest-Serving Leader Abe Resigns Due to Health Reasons

Abe’s signature

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