In its quarterly economic outlook report, the BoJ made downward revisions to its CPI price forecasts over the coming years, with the details found below.
Median core CPI forecast for fiscal 2019/20 at +0.9 pct vs +1.4 pct in October.
Median core CPI forecast for fiscal 2020/21 at +1.4 pct vs +1.5 pct in October.
Median core CPI forecast for fiscal 2018/19 at +0.8 pct vs +0.9 pct in Octoebr.
Median real GDP forecast for fiscal 2019/20 at +0.9 pct vs 0.8 pct in October.
Median real GDP forecast for fiscal 2020/21 at +1.0 pct vs 0.8 pct in October.
Median real GDP forecast for fiscal 2018/19 at +0.9 pct vs 1.4 pct in October.
Further Headlines:
Risks to economy skewed to downside, mainly via overseas economic developments.
No sign so far of excessively bullish expectations in asset markets, banks’ activities.
Prolonged downward pressure on banks’ profits from low rates could destabilize financial system.
Risk of financial system destabilizing not big for now but outlook warrants attention.
Regarding the outlook for prices, risks skewed to downside especially concerning developments in medium to long-term inflation expectations.
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