Bank of Japan downgraded its economic forecasts

At the Monetary Policy Meeting held on 30th October, the Bank of Japan abstained from further easing of monetary policy  and left its stimulus program unchanged. The institution, however, has cut its economic forecasts and postpone the deadline, when it’s expected to be reached the key inflation target, which strengthened the assumption that it is not ruled out expanding the incentives in one of the next meetings of the managing board.

The regulators already foresee the increase in gross domestic product for the fiscal year ending in March 2016, amounted to 1.2 percent, as previously estimated 1.7 percent. Inflation target of 2% is expected to be reached in the six months ending in March 2017, or about half a year later than former assessments.

Also series of economic reports were published that do not show much hope for recovery. Household spending unexpectedly declined by 0.4% yoy in predicted by analysts slowdown in growth from 2.9% to 1.2%. The basic annual inflation remained at minus 0.1%, more than the projected -0.2% but remains on negative territory. The unemployment rate was stable at 3.4%.