BOJ announces growth forecast cuts, climate scheme outline
The Bank of Japan announced on Friday a forecast cut in this year’s fiscal growth. However, the central bank remained firm the economy would moderately recover, signaling a lack of change in monetary policy.
The BOJ said it sees economic expansion at 3.8% in the current fiscal year ending in March 2022, lower than the 4.0% forecast in April.
Its yield curve control (YCC) target remained at -0.1% for short-term interest rates and 0% for 10-year bond yields at its two-day rate review that ended on Friday.
Japan’s consumer inflation forecast changed to 0.6% from 0.1% as energy costs and commodity prices increase.
The central bank also released a blueprint of its plan to boost funding in the country’s fight against climate change, including offering long-term loans at zero interest to banks.
The climate scheme will be launched this year until 2030.