BOJ to cut economic, price forecasts in quarterly projections due next week – Reuters

Dhwani Mehta FXStreet

The Bank of Japan is seen downgrading this fiscal year's economic and inflation outlooks in its quarterly assessment report due to be released at next week's monetary policy review meeting, Reuters reports, citing sources familiar with the central bank’s thinking.

Key takeaways

"It's somewhat weaker than three months ago," one of the sources said of this fiscal year's growth projections.

“The main reason for the downward revision in growth is the bigger-than-expected economic slump in April-June and soft consumption during the summer.”

“The nine-member board is also seen slightly trimming its inflation forecast for the current fiscal year, due largely to the impact of a government campaign offering discounts to domestic travel.”

Meanwhile, the latest Bloomberg survey of analysts showed Monday, the BOJ is unlikely to make any changes to its monetary policy settings but it could extend the duration of its measures to counter the coronavirus pandemic by January.

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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.

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