Investing.com investing.com 13 Jan, 2021 10:15 am

BOJ seen upgrading next year's growth forecast as stimulus eases pandemic pain

BOJ seen upgrading next year's growth forecast as stimulus eases pandemic pain
BOJ seen upgrading next year's growth forecast as stimulus eases pandemic pain: sources

In a quarterly review of its projections due out next week, the central bank is also seen roughly maintaining its view the world's third-largest economy is headed for a moderate recovery, three sources said on condition of anonymity.20-21 policy meeting, the sources said.But conditions haven't deteriorated enough to overhaul the BOJ's baseline economic scenario," one of the sources said, a view echoed by two other sources.While the fresh curbs will dent January-March growth, the BOJ expects robust exports and the effect of the government's stimulus package to offset some of the pain in the next fiscal year beginning in April, the sources said.

The central bank may slightly trim its forecast for the current fiscal year ending in March, reflecting the hit from renewed emergency measures, the sources said.But some officials worry that the state of emergency could be extended beyond the current plan of a month, and drag on growth longer than initially expected, the sources said.

Read full story at investing.com