BoJ to hold fire, stick to cautious optimism

The Bank of Japan is set to keep monetary policy steady next week and offer a cautiously optimistic view on the economic outlook, signalling it has taken enough steps for now to cushion the blow from the coronavirus pandemic, sources said.

The BoJ may slightly cut its growth forecast for the current year to March 2021, but will stick to its view Japan is headed for a moderate recovery later this year as the pandemic’s impact subsides, sources said. “The economy will remain weak for some time but isn’t falling off a cliff,” one said.