The report notes that the BOJ will consider downgrading its assessment on factory output at its policy meeting this month, as supply chain disruptions caused by lockdowns in China take a toll on the economy. Adding that the central bank may warn of heightened risks to the global landscape and exports as the situation in China and the Russia-Ukraine conflict cloud the outlook.
That said, the BOJ is likely to maintain its overall view that the economy is seen "picking up as a trend" with expectations of a rebound in consumption helping to offset the weakness in output.
