The Bank of Japan’s Deputy Governor Masazumi Wakatabe has expressed his support for the country’s ultra-loose monetary policy on account of the ongoing trade war between US and China. The export-oriented economy of Japan has been considerably weakening as a result of the trade dispute between the two world leaders.

Quantitative easing and negative interest rates, which were used to counter the effects of the 2008 global financial crisis could also be explored to fight any impending, possible economic downturn.

While speaking with business leaders in Aomori, Wakatabe remarked, “We need to pay increased attention to heightening risks to the BOJ’s scenario.” Continued escalation of trade tensions between US and China could not only impact global economic growth because of higher tariffs, but could also reduce decrease domestic demand in economies around the world.