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26 Apr 2013
BoJ sees Japan's economy returning to moderate recovery around mid-2013
FXstreet.com (Barcelona) - The BoJ has released its semiannual Outlook for Economic Activity and Prices on Friday in which it suggested that Japan´s gradual economic recovery should begin around mid-2013.
The central bank remarked however that there were downside risks to economic activity such as uncertainty regarding developments in overseas economies or a decline of confidence in fiscal sustainability in the medium to long-term.
The BoJ said that in comparison with the previous January 2013 forecast for the period through fiscal 2014, growth rates were projected to be higher “mainly due to the introduction of quantitative and qualitative monetary easing, an improvement in financial market conditions, and an increase in public investment.”
As far as inflation is concerned, the BoJ saw Japan´s core inflation at 1.4% in the fiscal year 2014 (versus 0.9% forecasted in January) and at 1.9% in fiscal year 2015. CPI excluding fresh food was projected at 3.4% in fiscal 2014 (versus 2.9% in January) and at 2.6% in fiscal 2015.
Finally the BoJ assured that it would “continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining
that target in a stable manner.”
The central bank remarked however that there were downside risks to economic activity such as uncertainty regarding developments in overseas economies or a decline of confidence in fiscal sustainability in the medium to long-term.
The BoJ said that in comparison with the previous January 2013 forecast for the period through fiscal 2014, growth rates were projected to be higher “mainly due to the introduction of quantitative and qualitative monetary easing, an improvement in financial market conditions, and an increase in public investment.”
As far as inflation is concerned, the BoJ saw Japan´s core inflation at 1.4% in the fiscal year 2014 (versus 0.9% forecasted in January) and at 1.9% in fiscal year 2015. CPI excluding fresh food was projected at 3.4% in fiscal 2014 (versus 2.9% in January) and at 2.6% in fiscal 2015.
Finally the BoJ assured that it would “continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining
that target in a stable manner.”