Bank of Japan revises down GDP forecast, details green fund

AFP, Tokyo :
The Bank of Japan on Friday revised down its growth forecast for the current fiscal year and laid out details of its first green fund, announced last month.
The central bank kept its key monetary easing measures unchanged, and maintained its longstanding two-percent inflation target, which remains far off despite years of efforts.
In its quarterly report, the BoJ said Japan’s economy would grow 3.8 percent in the current fiscal year to March, trimming its previous estimate of 4.0 percent growth “due to the impact of Covid-19.”
However, it revised up the forecast for the year to March 2023 to 2.7 percent growth from 2.4 percent.
It raised its inflation forecast to 0.6 percent for the current year to March from 0.1 percent “mainly due to higher energy prices.”
Last month, the central bank announced its first investment fund for efforts to address climate change, as the government works towards its new target of reaching carbon neutrality by 2050.
The scheme, likely to start this year, will be a successor to an existing programme aimed at promoting economic growth more generally.