In its Quarterly Outlook Report, the Bank of Japan (BOJ) highlighted that the risks to Japan’s economic and price outlook are skewed to the downside.
Japan's economy likely to improve as a trend.
Japan's consumer prices to fall for time being.
Japan's consumer prices to turn positive as economy improves, gradually accelerate pace of increase.
There is extremely high uncertainty over economic, price outlook.
Medium-, long-term inflation expectations to hover on a weak note, but resume uptrend as prices gradually rise.
Japan's financial intermediation may stagnate if financial institutions' profits come under prolonged pressure from COVID-19.
BOJ will take additional easing steps without hesitation as needed with eye on impact of covid-19 on economy.
Japan's economy remains in severe state but has started to pick up.
Exports, output are increasing.
Consumption is gradually picking up.
Consumption gradually picking up as a whole.
BOJ’s forecasts based on assumption there is no big resurgence of infections.
Exports likely to increase broadly.
Consumption likely to pick up only moderately, household income and job conditions to remain under downward pressure for time being.
Capex likely to remain on downtrend for time being.
Board's Real GDP median forecast for Fiscal 2020/21 at -5.5% vs. -4.7% in July
Board's Real GDP median forecast for Fiscal 2021/22 at +3.6% vs. +3.3% in July
Board's Real GDP median forecast for Fiscal 2022/23 at +1.6% vs. +1.5% in July.
Board's Core CPI median forecast for Fiscal 2020/21 at -0.6% vs. -0.5% In July.
Board's Core CPI median forecast for Fiscal 2021/22 at +0.4% vs. +0.3% In July.
Board's Core CPI median forecast for Fiscal 2022/23 at +0.7% vs. +0.7% In July.
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