BOJ Quarterly Outlook: Japan’s GDP forecasts revised up, CPI projections lowered

Reuters reports the key headlines from the Bank of Japan’s (BOJ) quarterly economic outlook report.

Japan's economy to continue expanding moderately as a trend.

Japan's economy likely to face impact of global slowdown for time being, though effect on domestic demand to be limited.

Inflation to gradually accelerate toward 2%.

Risks are skewed toward downside for economy, prices.

Japan's economy sustaining momentum for hitting 2% inflation, but momentum lacking strength.

Median core CPI forecast for fiscal 2019/20 at +0.6% vs +0.7% projected previously.

Median core CPI forecast for fiscal 2020/21 at +1.0% vs +1.1% projected previously.

Median core CPI forecast for fiscal 2021/22 at +1.4% vs +1.5% projected previously.

Median real GDP forecast for fiscal 2019/20 at 0.8% vs +0.6% previously projected.

Median real GDP forecast for fiscal 2020/21 at 0.8% vs +0.7% previously projected.

• BOJ leaves monetary policy unchanged, as widely expected
• USD/JPY shrugs off BOJ decision, remains on the back foot around 110.00