BOJ sees weaker near-term economy; recovery view intact – MNI
|Bank of Japan (BOJ) officials predict a weaker Japanese economic outlook for April due to subdued domestic consumption caused by the extended state of emergency and supply-side restrictions caused by semiconductor shortages, MNI reports, citing people familiar with the BOJ thinking.
Additional points
“The BOJ will likely downgrade its assessment on private consumption made in April at its two-day policy meeting ending on June 18 as face-to-face services are further hit by the state of emergency.”
“Bank officials expect private consumption, which will fall in the second quarter, to gradually pick up in or after the third quarter due to the spread of vaccinations.”
“As for private consumption, the BOJ sees a gradual recovery as older people in Japan are more cautious about going out than those in the US and Europe. “
“But the BOJ is not ruling out upside risk, given that private consumption had picked up swiftly before herd immunity was broadly established overseas. Exports of automobiles are expected to fall in May and June as automobile makers which are strongly hit by the shortage of semiconductors reduce their production, according to the BOJ view.”
Market reaction
USD/JPY was last seen trading at 109.55, up 0.06% on the day.
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.