Mubasher: The Bank of Japan (BoJ) may weigh cutting its economic forecasts slightly in its quarterly outlook to be issued next week, Bloomberg reported on Friday.
As recent data indicated a weaker than previously expected exports and production, the BoJ may lower the estimates for gross domestic product (GDP) for the fiscal year ended last March and for this year, the news outlet said, citing sources familiar with the matter.
The previous outlook projected that GDP will rise 0.9% in both fiscal years.
While the central bank’s shift toward a more caution approach should be seen in growth projections, it remains unclear whether the inflation forecasts will be downgraded, the sources said.
Policymakers view price change pace as being maintained, which dismisses the need to adjust monetary policy, they noted.
It is worth noting that BoJ governor Haruhiko Kuroda and board members will meet in 24 and 25 April to discuss monetary policy and forecasts for the quarterly report.