BoJ cuts economic view on three regions, stays cautiously optimistic

TOKYO: The Bank of Japan has cut its economic assessment for three of the country’s nine regions on but remained cautiously optimistic that still-solid domestic demand could help offset a slowdown in exports and manufacturing.

All of the regions kept their assessment on private consumption unchanged, despite fluctuations in spending patterns around the Oct 1 tax hike, likely backing the BoJ’s rosy view that solid domestic demand will offset external headwinds. The BoJ’s optimism is likely to allow it to justify keeping monetary policy steady for the time being.