• Japan economy to return to moderate recovery path as supply constraints ease
• Board’s median Japan GDP forecast +2.8% in 2010/11 (January’s forecast +3.3%)
• Board’s median Japan GDP forecast +0.6% in 2011/12 (January’s forecast +1.6%)
• Strong uncertainty exists over quake impact on Japan’s economy
• Board’s median Japan core CPI forecast -0.3% in 2010/11 (January’s forecast -0.3%)
• Board’s median Japan core CPI forecast +0.7% in 2011/12 (January’s forecast +0.3%)
• Board’s median Japan GDP forecast +2.9% in 2012/13 (January’s forecast +2.0%)
• Board’s median Japan core CPI forecast +0.7% in 2012/13 (January’s forecast +0.6%)
• Need to focus on downside economic risks for time being
• BOJ will take appropriate policy steps if needed
• Supply constraints to ease from Autumn
• Nuclear crisis hurting CAPEX, consumption
• Japan economic recovery to accelerate from October this year
• Supply chain disruptions, damage to power infrastructure could accelerate shift of production abroad
• Must pay attention to nuclear plant problem
• Corporate, household growth expectations could change due to quake
• Insufficient fiscal reconstruction could hurt economy
• Protracted economic deterioration due to supply constraints could push down prices
• Concern about long-term economic growth potential could hurt economic activity for prolonged period