MNI BRIEF: BOJ Lowers Industrial Production And Export Views

The Bank of Japan lowered its assessment on industrial production and exports in the wake of weaker data and outlook caused by supply chain disruption in its latest policy review released on Wednesday.

"Exports and industrial production have continued to increase despite some exports and production having been affected by supply-side constraints," the BOJ said.

"In addition, it is necessary to pay close attention to whether, while the impact of Covid-19 remains, firms' and households' medium- to long-term growth expectations will not decline substantially and the smooth functioning of financial intermediation will be ensured with financial system stability," the BOJ said.

But the BOJ left its overall economic assessment intact, saying, "Japan's economy has picked up as a trend, although it has remained in a severe situation due to the impact of the novel coronavirus at home and abroad."

The BOJ left its assessment on capital investment, private consumption and corporate financing conditions. As for the near-term outlook, the BOJ repeated "the economy is likely to recover, with the impact of Covid-19 waning gradually."