BOJ May Lower Economic, Price Forecasts

   Tokyo, April 27 (Jiji Press)--The Bank of Japan is expected to consider revising down its forecasts for the country's economy and prices in a quarterly report to be adopted at its two-day policy-setting meeting from Wednesday, due to the impact of U.S. President Donald Trump's high tariff policy.
   Meanwhile, the Japanese central bank is likely to keep its monetary policy unchanged.
   Trump indicated his intention to impose high tariffs on Japanese products as well, fueling concerns that Japanese companies could face declining exports and deteriorating earnings. Against this backdrop, the BOJ is projected to consider lowering its fiscal 2025 growth forecast for the Japanese economy, which stood at 1.1 pct in its latest Outlook for Economic Activity and Prices report released in January.
   Furthermore, given the possibility of an economic downturn, the BOJ is expected to consider lowering its core consumer price index outlook for fiscal 2025, which started this month, and also for fiscal 2026. In the January report, the central bank said it expects the core CPI to go up 2.4 pct in fiscal 2025 and rise 2.0 pct in the following year.
   The BOJ currently expects that its price stability target of 2 pct will be realized stably around fiscal 2026, which is in the latter half of the projection period of the outlook report.

(2025/04/27-11:37)

To read a full story, please click here to find out how to subscribe.