The Bank of Japan will likely offer a cautiously optimistic view of the economy in fresh quarterly projections due Friday, as renewed state-of-emergency curbs to combat the COVID-19 pandemic hurt consumption and keep growth heavily reliant on overseas demand.
The central bank will also unveil details of a new scheme to boost funding for activities aimed at battling climate change, putting it in line with its global counterparts in stepping up efforts to deal with the economic fallout from climate risks.
At the two-day policy meeting that ends Friday, the BOJ is set to maintain its yield curve control (YCC) targets at -0.1% for short-term interest rates and 0% for 10-year bond yields.