Global Slowdown: BoJ to downgrade economic forecast

TOKYO: The Bank of Japan (BoJ) will this month cut its forecast for both economic growth and inflation amid a slowdown in the global economy and cheaper commodities. The central bank will unveil the downward revisions in its biannual outlook for economic activity and prices report due out October 30. BoJ policymakers will downgrade the forecast for economic growth to around 1% from 1.7% for the current fiscal year to March 2016. The following fiscal year’s growth estimate would also be lowered from 1.5%. With China and other emerging markets slowing, the global economy is seen expanding by only about 3% this year, with little hope of a quick improvement in 2016. The central bank is also expected to trim its consumer price growth forecast, from its earlier estimate of 0.7%to less than 0.5% for the current fiscal year in the wake of a slump in crude oil prices.

Published in The Express Tribune, October 4^th, 2015.

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