BOJ: Japan economy likely to grow below its potential temporarily

Reuters reports the key headlines following the Bank of Japan’s (BOJ) announcement.

Expects short, long term rates to stay at current or lower levels as long as needed.

Expects short, long term rates to stay at current or lower levels as long as needed to pay close attention to chance momentum for hitting price target will be lost.

Has been no further increase in chance momentum for hitting price target will be lost but must continue to pay attention to that possibility.

Positive output gap likely to narrow temporarily but remain near current level on average with economy continuing on an expanding trend.

Timing of pickup in overseas growth likely to be delayed for longer than expected.

Japan economy likely to grow below its potential temporarily.

Japan economy likely to continue expanding as a trend.

Medium to long term inflation expectations have been more or less unchanged on the whole.

Medium to long term inflation expectations likely to follow increasing trend.

Close attention needed to chance if risks on overseas economy materialise, prices will be affected to some extent.