Barclays lower their Japan Q1 real GDP growth forecast to +0.1% q/q (+0.3% saar)
- from their previous at +0.3% (+1.4%)
See growth temporarily slipping below potential (+0.5-+0.8% annualized)
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The point I made about the BOJ in the headline is .... The central bank had been talking (internally) about an exit from QE (not imminent, note that, but discussion had begun) based on growth above potential leading to great inflation pressure .... but if, as Barclays expect, growth is going to dip under potential then inflation pressure will subside to an extent .... and thus there will be continued easing, for longer ....
