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
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