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Japan’s economy likely to improve as a trend.

 

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.

Medium-, long-term inflation expectations to hover on a weak note, but resume uptrend as prices gradually rise.

Risks to Japan’s economic, price outlook skewed to downside.

There is extremely high uncertainty over economic, price outlook.

Consumption, particularly that for services, likely to stay under strong downward pressure.

BOJ’s forecasts are based on assumption pandemic’s fallout will gradually ease toward end of its 3-year projection period.

Japan’s exports likely to slow pace of increase but rise broadly thereafter.

 

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