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The Bank of Japan should review its monetary policy framework to re-examine its tools for propping up inflation, one of its board members said on Thursday, as the fallout from the coronavirus outbreak risks tipping the economy into recession.

Goushi Kataoka, one of the most dovish members of the BOJ board, said the government and the central bank must coordinate their policies to maximise the boost to economic growth.

 

“I believe there’s room for the BOJ to review its policy framework and re-examine its effect including how it interacts with (the government’s) fiscal and pro-growth policies,” Kataoka said in a speech to business leaders in Otsu, western Japan.

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