BOJ: Japan's economy to remain in sever situation for the time being due to coronavirus spread

Reuters is out with the key headlines from the Bank of Japan (BOJ) quarterly economic outlook released along with the monetary policy statement on Monday.

Japan's economy to remain in sever situation for the time being due to coronavirus spread. 

Consumer inflation likely to be weak due to spread of coronavirus, oil price falls.

Japan's economy likely to improve on pent-up demand once virus impact subsides.

 Inflation likely to gradually accelerate as economy improves.

Expects spread of coronavirus to gradually subside globally towards latter half of this year.

Risks to economy, prices skewed to downside.

Weak signs seen in Japan’s inflation expectations.

BOJ's forecasts are based on assumption household, corporate expectations on future growth will not fall sharply.

Median core CPI forecast for fiscal 2020/21 at -0.7 to -0.3% vs +1.0% in Jan.

Board's median core CPI forecast for fiscal 2021/22 at 0-0.7% vs +1.4% in Jan.

Median core CPI forecast for fiscal 2022/23 at +0.4 to 1.0% for FY 2019 +0.6%.

Real GDP forecast for fiscal 2020/21 at -5.0 to -3.0% vs +0.9% in Jan.

For fiscal 2021/22 at +2.8% vs +1.1% in Jan.

For fiscal 2022/23 at +3.9%.

For fiscal 2021/22 at +2.8% to +3.9%.

For FY 2019 -0.4% to -0.1%.

USD/JPY reaction

USD/JPY dropped to a four-day low of 107.30 on the BOJ policy decision, now trading at 107.35, down 0.14% on the day.