Reuters reports that Bank of Japan Governor Haruhiko Kuroda said on Thursday the economy will remain in a severe state but improve ahead as the impact from the coronavirus pandemic subsides.

“Japan’s economy is expected to improve as the impact of the pandemic subsides, supported by pent-up demand ... an accommodative monetary environment and the government’s stimulus package,” Kuroda said in a speech at a quarterly meeting of the central bank’s regional branch managers.

Kuroda also said Japan’s core consumer prices will likely fall for the time being due to sliding oil costs and the impact from the pandemic.