Bank of Japan (BOJ) cuts its growth outlook for the year starting in next April, along with keeping its zero-interest rate policy as the European sovereign debt crisis reduced the global demand, which also keeps the yen strong.
As, the BoJ's Governor Masaaki Shirakawa and his policy-board members lowered their economic forecast for 2012 to 2% from October's estimate of 2.2%, also the BoJ maintained its projection for consumer prices to rise 0.1%.
The BOJ concerns are growing amid that the European debt crisis that will slow exports and keep the yen near a record high and its ongoing appreciation along with cutting into corporate profits.
The BoJ's Governor said that the European situation is considered the biggest danger because it's threatening the global economy and dragging it into a slowdown, as speculations indicated that the BoJ's governor may not take further easing steps until the turmoil is resolved.
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