BOJ Cuts FY 2021 Domestic Growth Forecast

Economy Politics

Tokyo, Oct. 28 (Jiji Press)--The Bank of Japan lowered its fiscal 2021 growth projection for the domestic economy on Thursday, in light of supply chain constraints and sluggish consumption this summer amid a resurgence of the coronavirus.

Japan's gross domestic product in the year through March 2022 is expected to rise 3.4 pct from the previous year in price-adjusted real terms, weaker than the earlier forecast 3.8 pct, the BOJ said in a quarterly report released after its two-day policy-setting meeting.

At the meeting, the BOJ Policy Board voted to keep unchanged the central bank's current monetary easing policy.

In the Outlook for Economic Activity and Prices report, the BOJ upgraded the fiscal 2022 growth projection to 2.9 pct from 2.7 pct.

Meanwhile, the bank slashed the fiscal 2021 inflation forecast to 0.0 pct from 0.6 pct, following a base-year change for the country's core consumer price index, which amplified the effects of cheaper mobile phone rates.

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Jiji Press