This photo shows the Bank of Japan headquarters building in Tokyo. (Mainichi)

       TOKYO (Kyodo) -- Some Bank of Japan policymakers warned that the fallout of supply constraints hitting the auto sector will spread and last longer than expected, minutes of a policy-setting meeting in September showed Tuesday.

       Many members also said the debt woes of Chinese property developer Evergrande Group warrant close attention for the impact they may have on the global economy, with one of them stressing the need for the BOJ to respond promptly if necessary.

       At the Sept. 21-22 meeting, the BOJ decided to maintain its ultraeasy monetary policy to support the COVID-19-hit economy. In a post-meeting statement, the central bank acknowledged the impact of supply-side constraints on exports and industrial output, the key drivers of the world's third-largest economy.

       One member said "supply-side constraints seemed to be taking longer to resolve than initially anticipated by firms and that, with the wide range of supporting industries in Japan's automobile industry, there was also a risk that the adverse effects of these constraints could spread more than expected," according to the minutes.

       As automakers were forced to curb production due to a global chip crunch and factory shutdowns in Southeast Asia where COVID-19 cases were surging, some members said attention should be paid to the risk of capital spending being postponed or corporate financing deteriorating as a result, according to the minutes.

       Japan has seen the number of daily confirmed coronavirus cases falling in recent weeks and a state of emergency ended at the end of September, raising economic recovery hopes. But a shortage of parts and rising commodity prices are clouding the outlook for export-reliant, energy-scarce Japan.

       On the inflation side, however, surging wholesale prices have yet to lead to higher consumer prices on a large scale.

       The BOJ is still struggling to accelerate inflation toward its 2 percent target, with sharply lower mobile communication fees weighing on the core consumer price index, a key gauge of inflation.

       "One member pointed out that if firms were unable to pass on cost increases stemming from a rise in commodity prices to their product prices, expenditure on business fixed investment and labor costs would be curbed, and households facing stagnant income in turn would consume less," the minutes said.

       "This member continued that such a vicious cycle needed to be changed to achieve sustainable inflation."

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