BOJ Quarterly Report: There is big uncertainty on outlook
|Following are the key highlights from the BOJ’s quarterly outlook report, published alongside the monetary policy statement on Tuesday.
Expect financial intermediation to play out smoothly under financial system stability.
Likely to avoid downward pressure strengthening on real economy from financial front.
Japan's financial system remains stable as a whole.
Japan's economy likely to improve as a trend but pace of recovery to remain moderate.
Japan's consumer prices likely to fall for time being.
Risks to economic outlook skewed to downside for time being.
Downside risks bigger on price outlook.
Consumer inflation to gradually accelerate as effect of cellphone fee cuts taper off.
Exports, output continue to increase.
Capex showing some sign of weakness but picking up.
Inflation expectations flat.
Pick-up in consumption stalling due to downward pressure on service spending.
BOJ’s forecasts based on assumption that vaccine rollouts will ease impact of pandemic
Exports likely to continue increasing steadily even though strength in auto shipments to slow for time being.
Consumption expected to pick up again after stalling due to weakness in face-to-face service spending.
Consumer prices to keep falling slightly due to impact of pandemic, cellphone fee cuts.
Impact of cellphone fee cuts on CPI likely temporary, when excluding this factor inflation likely to move on firm note.
Medium-, long-term inflation expectations likely to heighten as consumer inflation turns positive.
It will take time but inflation will gradually accelerate towards BOJ’s target.
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.