The Bank of Japan is considering downgrading its assessment of the country's economy at its upcoming policy meeting next week in view of the deepening economic impact of the globally spreading new coronavirus, according to sources close to the matter.
The BOJ is expected to revise its view that the economy is on a moderate expanding trend — an expression it has been using since March 2017 — in a statement to be issued after the two-day policy-setting meeting set to start Wednesday, after assessing recent developments such as the sharp fall in the number of inbound tourists and reduced exports to China, the sources said.
The central bank is now expected to say the recovery has slowed, the sources said. In a statement released after its January policy meeting the bank said that the country's economy "is likely to continue on an expanding trend" through fiscal 2021, supported by government stimulus.