MNI BRIEF: BOJ Cuts View On Economy, Private Consumption

The Bank of Japan board on Friday lowered its assessment on the economy and private consumption as economic activity has been hit by a worsening of the terms of trade and higher food and energy prices.

But the BOJ kept its economic recovery scenario as policymakers await more economic data showing how Japan’s economy has been hit by a worsening in the terms of trade. “Japan’s economy has picked up as a trend, although some weakness has been seen in part, mainly due to the impact of Covid-19," the BOJ said.

“A pick-up in private consumption has paused due to increased downward pressure stemming from a resurgence of Covid-19, particularly on services consumption."

The BOJ mentioned risks linked to Ukraine. “In the wake of Russia’s invasion of Ukraine, global financial and capital markets have been volatile and prices of commodities such as crude oil have risen significantly, and future developments warrant attention,” the BOJ said.