BOJ Outlook Report Overview
Japan’s Economy to Moderately Recover
The Japanese economy is expected to moderately recover around the middle of fiscal year 2023, supported by pent-up demand, despite downward pressure from high commodity prices and slow overseas recovery. A virtuous cycle of income to spending is projected to lead to sustained growth above the potential rate, although the pace of growth may gradually decelerate toward the end of the projection period.
Japan’s CPI Growth to Decelerate
The year-on-year rate of increase in the consumer price index is expected to decelerate by the middle of fiscal year 2023 due to a decline in the pass-through effects of cost increases. However, it is projected to moderately accelerate with fluctuations thereafter, as inflation expectations and wage growth improve, along with changes…
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