BOJ Likely to Warn About Weak Factory Output

The Bank of Japan is likely to maintain its massive monetary stimulus on Tuesday and offer a bleaker view on factory output, following signs that the world’s third largest economy was hit harder than expected by a sales tax increase six months ago.

Central bank policymakers are seen sticking to their view that the economy will pass through a temporary soft patch to resume a moderate recovery and achieve the bank’s 2 percent inflation target next year without additional monetary stimulus.

An intense burst of monetary and fiscal stimulus, which were the first two arrows of Prime Minister Shinzo Abe’s strategy to end 15 years of deflation, has helped boost business sentiment by lifting share prices and weakening the yen.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.