The Bank of Japan is set to increase its growth forecast to above 2 per cent, unnamed sources have told Reuters. The Bank’s forecast is currently 1.8 per cent for the fiscal year, and the next rate setting meeting is July 14-15.
The Bank would be playing catch-up with the government, if it does revise its forecast up. The finance ministry changed its growth forecast from 1.4 to 2.6 per cent last month. Private economists have apparently settled on a figure close to 2.4 per cent. Uncertainty about the economic recovery is likely to temper the Bank’s optimism, which was fuelled yesterday by a better-than-expected manufacturers’ confidence survey.