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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