BOJ reportedly considering downgrading view of economy amid state of emergency

Author: Justin Low | Category: Central Banks

Bloomberg reports, citing people familiar with the matter

The report says that the BOJ is likely to consider downgrading its economic assessment at its policy meeting next week after the state of emergency declarations in more prefectures across Japan to curb the spread of the virus in the country.

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Adding that BOJ officials will need to discuss its assessment as there is little doubt that the latest state of emergency declarations will take a heavy toll on the economy.

However, the sources say that over the longer-term, the BOJ probably does not have to change its view that a moderate pickup will continue following the record quarterly economic contraction experienced in the spring last year.

For some context, this was the latest economic assessment by the BOJ:

"Japan's economy has picked up, although it has remained in a severe situation due to the impact of the novel coronavirus at home and abroad."

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