Reuters reports that the Bank of Japan is expected to downgrade its economic growth forecast for the current fiscal year as supply constraints caused by Asian factory shutdowns cripple output and exports. The BOJ is also likely to trim its consumer inflation forecast for the year ending in March.
"Upcoming data will likely show a pretty big plunge in Japanese exports and output due to factory shutdowns in Asia. That will clearly push down economic growth," said one of the sources, who spoke on condition of anonymity as they were not authorised to speak publicly.
The revisions will be part of the BOJ's quarterly growth and price forecasts due at its next policy meeting on Oct. 27-28.