BOJ cuts inflation forecast, warns of soft consumption as pandemic pain lingers

Relo

27/04/2021 04:00

TOKYO, April 27 (Reuters) - The Bank of Japan on Tuesday cut
this fiscal year's consumer inflation forecast and warned of
lingering risks to the economic outlook as the COVID-19 pandemic
continues to hurt consumption.
    As widely expected, the BOJ maintained its short-term
interest rate target at -0.1% and that for 10-year government
bond yields around 0%.
    "The pick-up in consumption is stalling as downward pressure
on service spending, such as for dining and accommodation, is
strengthening," the central bank said in a quarterly report on
the economic and price outlook.
    In its fresh quarterly projections, the BOJ said it expects
core consumer inflation to hit 0.1% in the current fiscal year
that began in April. That was lower than 0.5% projected in
January.
    The BOJ now expects core consumer inflation to hit 0.8% the
following year and 1.0% in fiscal 2023.

 (Reporting by Leika Kihara, Tetsushi Kajimoto and Daniel
Leussink
Editing by Chang-Ran Kim)
 ((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters
Messaging: leika.kihara.reuters.com@reuters.net))