TOKYO- The Bank of Japan will consider cutting its economic forecast for the current fiscal year ending in March as consumption takes a hit from state of emergency measures against the coronavirus, the Nikkei reported on Wednesday.
The central bank, however, may revise up its growth forecast for the following year in its quarterly review of its projections due out next week, the paper said.
In its current projections released in October, the BOJ expects the economy to expand 3.6 percent next fiscal year following this year’s estimated 5.5 percent contraction.
While the state of emergency will hurt spending, the BOJ expects robust exports and a boost to growth from the government’s stimulus package to ease some of the pain in the year beginning in April, sources familiar with its thinking told Reuters.
