BOJ downgrades FY 2021/22 growth and inflation outlooks

Core CPI median forecast for fiscal 2021/22 at 0.0% vs +0.6% in July

Core CPI median forecast for fiscal 2022/23 at +0.9% vs +0.9% in July

Core CPI median forecast for fiscal 2023/24 at +1.0% vs +1.0% in July

Real GDP median forecast for fiscal 2021/22 at +3.4% vs +3.8% in July

Real GDP median forecast for fiscal 2022/23 at +2.9% vs +2.7% in July

Real GDP median forecast for fiscal 2023/24 at +1.3% vs +1.3% in July

Japan's economy likely to recover, accelerate pace of growth as pandemic's impact subsides.

Japan's consumer inflation likely to gradually accelerate.

Must be vigilant to risks including developments of pandemic, impact on economies.

Japan's economy remains in severe state but picking up as a trend.

Exports, output weak due to supply constraints but increasing as a trend.

Capex showing weakness in some sectors but picking up as a whole.

Service spending remains under pressure but consumption showing signs of pickup.

Japan inflation expectations picking up.

High uncertainties over COVID-19 impact on consumption activities.

Need to pay attention to effects of supply-side constraints.

As impact of COVID-19 wanes demand imbalances and output and shipping bottlenecks likely to go to resolution.

more to come ...