The results of the Latest Reuters poll showed that more than half of the 40 economists polled believe that the Bank of Japan’s (BOJ) next step will be to start normalizing its super-loose monetary policy.
Additional Findings:
“But 16 economists projected the BOJ will ease further.
That compares with 29 and 10, respectively, in the March survey.
Many forecast the BOJ will likely retain its current monetary policy framework for at least the rest of the year.
They also forecast the economy contracted at an annualized rate of 0.2 percent last quarter amid weak foreign demand for Japanese products.
It will shrink again by an annualized rate of 2.0 percent in the October-December quarter due to the planned sales tax hike, the poll showed. Only one economist predicted growth that quarter.
But the economy is expected to muster modest growth of 0.5 percent this fiscal year and 0.6 percent for the next, little changed from last month’s poll.
Meanwhile, forty of 41 economists expect the levy will be raised as scheduled, according to the poll, which was conducted April 2-11.”
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