Tokyo, October 29 The Bank of Japan’s economic outlook report released on the 29th announced that Japan’s actual economic growth is expected to be negative 5.5% in fiscal year 2020 (as of March 2021) and Japan’s economic growth is expected in fiscal 2021. Increased from the previous 3.3% to 3.6%.
Previously, the Bank of Japan had expected the Japanese economy to shrink by 4.7% in fiscal 2020.
The report also lowered its inflation expectations for this fiscal year. According to the report, affected by policy factors such as nationwide tourism promotion activities, Japan’s core consumer price index, excluding fresh food, is expected to fall by 0.6% this fiscal year from the previous fiscal year, which is 0.1 percentage point lower than previously expected.
The Bank of Japan concluded its two-day monetary policy meeting that day. The Bank of Japan stated that it will continue to maintain short-term interest rates at minus 0.1% and maintain long-term interest rates at around zero by purchasing long-term government bonds.
The Governor of the Bank of Japan Haruhiko Kuroda said at a press conference that afternoon that Japan’s economic recovery will be a slow process. The central bank will pay close attention to the impact of the new crown epidemic on the economy and will continue to introduce further easing measures if necessary.