Japan Central Bank Paints Gloomy Picture for Exports on Supply Constraints

Source: BOJ

The Bank of Japan is now more downbeat on the country’s exports, given the ongoing supply issues. 3333 is down 0.44%

• The BoJ predicts exports and factory output to continue to climb but will be hit by supply constraints due to Asian factory shutdowns. It expected a steady increase in July.
• Governor Haruhiko Kuroda said uncertainties remain on how long the supply bottlenecks could last, noting that consumption declined from July to August as expected.
• Consumption is expected to strengthen as the impact of the COVID-19 pandemic wanes, boosting optimism on the country’s economic recovery.
• Kuroda said the foundations of the recovery are intact, but the BOJ noting the improvement in corporate profits and business sentiment.
• The Governor also downplayed issues hounding the China Evergrande Group, noting that he does not expect this to become a global problem.
• The short-term interest rate target was kept at -0.1%, and the 10-year bond yield was at 0%.