Japanese government cuts inflation outlook to 0.6% from 1.4% for FY2015

Latest forecasts from Abe & Co

• FY2015 CPI cut to 0.6% vs 1.4% prior
• FY2016 CPI cut to 1.6% vs 1.8% prior
• Says won't meet FY202 primary balance surplus

The CPI targets are under the BOJ's expectations of 2.0% in FY2016. For FY2020 they now forecast a primary budget deficit of ¥6.2tn

Abe has been out with a comment saying that it's important to achieve the primary surplus and has asked ministers to come with spending reforms

The news hasn't affected the yen