BOJ inflation prediction to show limits of Gov Kuroda's ultra-easy policy
The Bank of Japan is set to predict for the first time that inflation will remain well short of its 2% target beyond Governor Haruhiko Kuroda's term through early 2023, say sources familiar with its thinking.
The central bank is also expected to trim this fiscal year's inflation forecast reflecting cuts in cellphone charges, the sources say, underscoring the challenge it faces in eradicating Japan's sticky deflationary mindset.
Such projections, to be made in fresh quarterly estimates due out next week, would reinforce expectations the BOJ will maintain its massive stimulus for the foreseeable future.
While the BOJ may paint a rosier view on the economy due to robust exports, it will warn of the strains on consumption from a recent resurgence in COVID-19 infections, they said.
BOJ warns low rates, structural woes to hurt banks even after pandemic subsides
The Bank of Japan said on Tuesday low interest rates and structural factors will continue to weigh on financial institutions' profits even after the COVID-19 pandemic subsides.
"Japan's financial system remains stable as a whole," even though the pandemic is inflicting huge damage to the economy, the BOJ said in a semi-annual report analysing the country's banking system.
Reference: Reuters
Thai
Eng