The Bank of Japan held a policy meeting today, after which it resolved to keep its ultra-loose monetary policy unchanged and revised upward its economic growth forecast.
The Bank of Japan today resolved to keep monetary policy unchanged and forecast that inflation will remain below the target of 2% set by the Bank of Japan until fiscal year 2023.
The Bank of Japan also admitted that the economic outlook is still “highly uncertain” and that it will have to observe the changes in the 2019 coronavirus disease (COVID-19) epidemic, which is still severe, on the impact on the Japanese domestic and international economy.
The Bank of Japan also revised upward its economic growth forecast for the 2020-2021 fiscal year ending in March, from an estimated contraction of 5.6% in January to a contraction of 4.9%.
The Bank’s economic growth forecast for the current fiscal year was revised upward to 4.0% from the January estimate of 3.9%. It also raised its economic growth forecast for the fiscal year ending March 2023 to 2.4% from the 1.8% forecast in January.
The Bank of Japan explained, “The economic growth estimates were all revised upward, mainly for fiscal 2022, as domestic and foreign demand has turned stronger.