TOKYO, Oct. 15 - Reuters : The Bank of Japan is expected to downgrade its economic growth forecast for the current fiscal year as supply constraints caused by Asian factory shutdowns cripple output and exports, sources familiar with its thinking say says.
The BOJ is also likely to reduce its consumer inflation forecast for the year ending in March, five sources said, which would reinforce market expectations it will lag behind other central banks in whittling down crisis-mode stimulus measures.
Upcoming data will likely show a pretty big drop in Asian exports and output due to factory shutdowns in Japan. That will also push down economic growth, said one of the sources who spoke on condition of anonymity, as they were not authorised to speak publicly.
Manufacturers in the region have been grappling with pandemic-induced disruptions that have led to surging logistics costs and supply chain bottlenecks.
The revisions will be part of the next quarter growth and price forecasts dragged out at the BOJ's quarterly policy meeting on Oct. 27 - 28.