The Japan economy is expected to continue a moderate recovery as trend, while it will be affected by the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike, the Bank of Japan said in its monthly report on Monday.
The bank forecast industrial production to follow a moderate increasing trend. Likewise, exports are expected to rise moderately against the background of the recovery in overseas economies.
On the price front, the bank said domestic goods prices are rising moderately relative to three months earlier and consumer price inflation is seen at around 1.25 percent.
The BoJ has kept its monetary policy unchanged last Friday and maintained its economic view. The bank will increase the monetary base at an annual pace of about JPY 60-JPY 70 trillion.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.