Bank of Japan board member Yutaka Harada has expressed concerns about the Japanese economy while addressing business leaders on Wednesday. He stated that BOJ should increase stimulus efforts immediately if the Japanese economy slows down below target.

Falling exports and industrial production have so far failed to dent capital expenditure and private consumption in Japan, but the trade war has heightened risks for the economy in recent times. Harada also worried that the upcoming sales tax hike proposed to be implemented in October could result in reduced consumption and affect inflation targets.

Job growth and consumption are already affected due to falling exports and production, and the sluggishness in prices could delay inflation from rising in the future. Harada, an advocate of monetary easing policies, maintained that BOJ’s ultra-loose policy has brought in immense benefits to the Japanese economy.