BOJ cuts Japan's potential growth estimate, highlighting need for reforms
The Bank of Japan cut its estimate on the country’s potential economic growth rate to “around zero or slightly positive,” underscoring the need for labour market reforms and deregulation to overcome the challenges posed by a dwindling working-age population.
The BOJ presented the finding as part of its quarterly economic and price outlook report released on Thursday.
In the previous estimate in January, the central bank said Japan’s potential growth was “above 0.5%.”
QUOTES-BOJ Governor Kuroda's comments at news conference
The Bank of Japan retained its easy monetary policy settings on Thursday and projected inflation at well below its 2% target for at least two more years, reinforcing market bets it will lag other central banks in dialling back crisis-mode policies.
In fresh quarterly estimates, the BOJ cut its consumer inflation forecast for the year ending in March 2022 to 0% from 0.6% due largely to the impact of cellphone fee cuts and a change in the base year for the price index.
Reference: Reuters
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