TOKYO (Reuters) – The Bank of Japan is most likely to preserve this month its projection that the economy will gradually recover from the damage wrought by the coronavirus pandemic in the latter half of this year, sources said.
A male wearing a protective mask stands in front of the head office of Bank of Japan amidst the coronavirus illness (COVID-19) outbreak in Tokyo, Japan, May 22,2020 REUTERS/Kim Kyung-Hoon
Such a view would reinforce market expectations that it will pass up bold financial reducing steps at its June rate review, after the BOJ and the federal government unveiled a variety of support measures for organisations in the last couple of months.
But it would contrast with the European Reserve bank’s move on Thursday to provide a bigger-than-expected expansion of its stimulus plan to prop up the economy.
The BOJ’s optimism shows its growing conviction that the world’s third-largest economy hit bottom in April or May, when lockdown steps kept residents house and services shut, stated four sources knowledgeable about the central bank’s thinking.
” There aren’t sufficient factors that wo