BOJ Chief Sees Global Economy Withstanding Evergrande Crisis
(Bloomberg) -- Japan’s central bank chief has weighed into the debate over the potential impact of China Evergrande Group’s debt crisis, predicting that the fallout will remain limited for now.
There are “nervous” movements in global financial markets because of the Evergrande issue and the Bank of Japan will continue to monitor the situation closely, Governor Haruhiko Kuroda said Wednesday at a news briefing after keeping monetary stimulus unchanged.
“China’s real estate sector has grown significantly over a long time, and this particular firm’s debts appear to have become quite large,” Kuroda said when asked about the matter. “For now I see this as this particular firm’s issue, and even if there are similar cases, that’s a problem within the Chinese real estate sector.”
There’s no need to expect a large slowdown in the Chinese or U.S. economies, Kuroda added.
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