Kuroda cites need for global cooperation

Bank of Japan Governor Haruhiko Kuroda has stressed the need to closely work with other countries to address the impact of the new coronavirus outbreak on the global economy.

After a BOJ policymakers' meeting on Monday, Kuroda told reporters that they convened two days earlier than scheduled because of the need for swift measures that smoothen business operations and stabilize financial markets.

Kuroda also indicated that the decision to meet earlier was made following the US Federal Reserve's interest rate cut, and within the framework of an agreement among the Group of Seven nations to promote cooperation in the fight against the outbreak.

Regarding the impact in Japan, Kuroda pointed out that exports, mainly to China, have dropped. He also said the service industry has been hit hard by the cancellations of events, as well as the government's request for people to refrain from going out.

Asked about fears over a repeat of the global financial crisis that began in 2008, Kuroda said the situation would improve if the spread of infections subsides worldwide. He said he acknowledges that the real economy will not suffer a slump like that of the financial crisis.

Kuroda said low economic growth will likely continue throughout the world for a certain period, and a V-shaped recovery is not forecast.