30 Apr 2015
Bank of Japan lowers growth and inflation forecasts
FXStreet (Mumbai) - The Bank of Japan (BOJ), in its semiannual report, revised its growth and inflation forecasts for the current and next fiscal year lower.
The BOJ revised its inflation forecasts for FY 2015/16 lower to 0.8% from the previous forecast of 1.00%. The FY 2016 CPI is seen at 2% vs 2.2% expected in January. The BOJ now sees FY 2015 real GDP at 2.00%, compared to the previous forecast of 2.1% in January. Meanwhile, FY 2016 real GDP is seen at 1.5% vs 1.6% expected in January.
The BOJ added that it will take longer to reach its 2% inflation target. The BoJ said that, while it is keeping the "price stability target" at 2%, it now expects to reach this in the first half of fiscal 2016 depending on movement in oil prices.
The BOJ revised its inflation forecasts for FY 2015/16 lower to 0.8% from the previous forecast of 1.00%. The FY 2016 CPI is seen at 2% vs 2.2% expected in January. The BOJ now sees FY 2015 real GDP at 2.00%, compared to the previous forecast of 2.1% in January. Meanwhile, FY 2016 real GDP is seen at 1.5% vs 1.6% expected in January.
The BOJ added that it will take longer to reach its 2% inflation target. The BoJ said that, while it is keeping the "price stability target" at 2%, it now expects to reach this in the first half of fiscal 2016 depending on movement in oil prices.