Aug 15
Japan: BoJ leaves rates unchanged, but sees increasing downside risk to economy
The Bank of Japan (BoJ), as widely expected, left its leading O/N target interest rate unchanged at 0.5% in a unanimous decision at today's monetary policy meeting. More interestingly, the BoJ revised down its forecast for GDP growth, and is currently working on the assumption that GDP growth will be substantially below potential for the rest of the year. The BoJ's inflation forecast, in contrast, was revised substantially up, and the underlying assumption now seems to be that inflation will
