Minutes from June’s Bank of Japan policy meeting said conditions in the global economy have “begun to stop worsening” and credit markets are “starting to regain stability”. Turning to Japan itself, the bank echoed familiar sentiments, saying that exports will continue to recover “mainly due to progress in adjustments in overseas inventories” while private consumption remains relatively weak “as the employment and income situation [is] likely to become increasingly severe”. On inflation, the BOJ said that the pace of consumer price growth is likely to turn negative, reflecting the declines in the prices of petroleum products, stabilization of food prices, and overall economic weakness. On balance, policymakers concluded that uncertainty surrounding the outlook for the global economy [remained] high” and warned that “risks to the outlook were still tilted to the downside” despite some early signs of improvement.
Al Bawaba
