BOJ keeps baseline economic view despite covid spread – MNI
|The Bank of Japan (BOJ) is unlikely to alter its baseline economic scenario despite the resurgence of COVID-19 infections across the globe, MNI reports, citing the central bank’s officials.
Key takeaways
“Bank officials see exports and production levels holding up as overall demand remains solid, although weakness is still seen across the services sector.”
“There is a concern that domestic demand could slow in coming months as wages and bonuses slow on the back of falling corporate profits and weaker face-to-face services. However, the BOJ sees that weighing on the growth outlook for services, but not the wider economy.”
“The BOJ's baseline scenario assumes Covid-19 will not spread on such a large scale that wide-ranging public health measures and strict lockdown measures are not implemented.”
Note that Japan is likely to compile the third supplementary budget for this fiscal year on November 27.
Market reaction
USD/JPY remains under pressure around 104.30, at the time of writing, mainly weighed down by the US dollar weakness and a pause in the risk-rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.