BOJ likely to downgrade its economic assessment due to coronavirus impact
Forex News

Economic activity has been weak recently due mainly to impact of coronavirus outbreak

Reuters is out with the key headline from the Bank of Japan (BOJ) monetary policy statement, in light of certain policy adjustments announced this Monday.

Exports, production have declined due to overseas economic slowdown since last year.

Fall in external demand mainly from china and effects of global supply chain from production stoppages also weighed on Japan’s exports, production.

Though financial conditions are accommodative on the whole they have become less accommodative partly in corporate financing.

Inflation expectations more or less unchanged from longer perspective.

Somewhat weak indicators of inflation expectations have been seen recently.

Japan’s economic activity likely to remain weak for time being mainly affected by coronavirus outbreak.

Economic activity expected to eventually return to moderate expanding trend.

Yr/yr rate of change in CPI likely to somewhat weak for time being.

Need to watch for the impact of oil price drop.

Watching the coronavirus impact very closely.

New loan program to have zero interest rate, runs for a year.

New loan program to be offered until the end of September.

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