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BOJ ups GDP forecasts, inflation forecasts cut

BOJ ups GDP forecasts, inflation forecasts cut

Following the BOJ’s unchanged monetary policy stance, the release of the central bank’s ‘Outlook for Economic Activity and Prices’ report highlights (via Reuters):

Risks to economy roughly balanced

Downside risks to prices are large

Household inflation expectations pose both upside, downside risks to prices

Still uncertainty about movements in overseas economies

Momentum towards 2% price target is intact but still lacks strength

BOJ’s median real GDP forecasts raised:

For fiscal 2017/18 at +1.9 pct vs +1.8 pct projected in July

For fiscal 2018/19 at +1.4 pct vs +1.4 pct projected in July

For fiscal 2019/20 at +0.7 pct vs +0.7 pct projected in July

Inflation forecasts trimmed:

Core CPI expected +0.8 pct in fy2017/18 vs +1.1 pct projected in July

Core CPI expected +1.4 pct in fy2018/19 vs +1.5 pct projected in July

Core CPI expected +1.8 pct in fy2019/20 vs +1.8 pct projected in July

 

 

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