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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
