I posted the main points from the Bank of Japan here:
More:
- positive output gap likely to narrow temporarily but remain near current level on average with economy continuing on an expanding trend
- timing of pickup in overseas growth likely to be delayed for longer than expected
- Japan economy likely to grow below its potential temporarily
- Japan economy likely to continue expanding as a trend
- medium to long term inflation expectations have been more or less unchanged on the whole
- medium to long term inflation expectations likely to follow increasing trend
- close attention needed to chance if risks on overseas economy materialise, prices will be affected to some extent
And, from the BOJ quarterly report:
- risks are skewed towards downside for economy, prices
- Japan's economy sustaining momentum for hitting 2% inflation, but momentum lacking strength
- Japan's economy expanding moderately as a trend, though overseas slowdown affecting exports, output, business sentiment
- inflation expectations moving sideways
- overseas slowdown likely to affect japan economy but impact on domestic demand will be limited
- no sign so far of excessively bullish expectations in asset markets, financial institutions' activities
- prolonged downward pressure on financial institutions' profits from low rates could destabilise financial system
- risk of financial system destabilising not big for now as financial institutions have sufficient capital bases
- median core CPI forecast for fiscal 2019/20 at +0.7% vs +1.0% in July
- median core CPI forecast for fiscal 2020/21 at +1.1% vs +1.3% in July
- median core CPI forecast for fiscal 2021/22 at +1.5% vs +1.6% in July
- median real GDP forecast for fiscal 2019/20 at +0.6% vs +0.7% in July
- median real GDP forecast for fiscal 2020/21 at +0.7% vs +0.9% in July
- median real GDP forecast for fiscal 2021/22 at +1.0% vs +1.1% in July
Headlines via Reuters