The Bank of Japan cut its inflation forecasts on Wednesday and warned of rising risks to the economy from faltering global demand, further pushing back policymakers’ years-long efforts to foster durable growth.
As widely expected, the BOJ retained its ultra-easy monetary settings at its policy review, leaving Japan some way off from exiting a sweeping stimulus program begun in 2013.
The central bank also maintained its view that Japan’s economy, the world’s third largest, will continue to expand at a modest pace. Yet the rising pressure on global growth from a trade war between the United States and China – Japan’s biggest trading partners – has many analysts wary about the outlook.
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