BOJ Cuts Estimate on Japan's FY 2020 GDP

Economy Politics

Tokyo, Jan. 21 (Jiji Press)--The Bank of Japan on Thursday lowered its estimate on Japan's real gross domestic product for fiscal 2020 due to the impact of the novel coronavirus crisis while keeping its current monetary easing policy unchanged.

In a quarterly report released after its two-day monetary policy meeting through the day, the BOJ said that Japan's real GDP is expected to fall 5.6 pct in fiscal 2020, which ends in March, worse than its October 2020 projection of a 5.5 pct decline.

The report said that the country's GDP is seen rising a real 3.9 pct in fiscal 2021 and 1.8 pct in fiscal 2022, stronger than the October forecasts of 3.6 pct and 1.6 pct growth, respectively.

"Japan's economy has picked up as a trend although it has remained in a severe situation due to the impact of" the novel coronavirus crisis both at home and abroad, the central bank said in the Outlook for Economic Activity and Prices report.

The BOJ's Policy Board voted seven to one to keep the bank's short-term policy interest rate at minus 0.1 pct and guide 10-year Japanese government bond yields around zero pct.

[Copyright The Jiji Press, Ltd.]

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