BOJ to consider offering bleaker view on output as trade war bites – sources

Financial Post | Dec 7, 2019 at 4:32 AM
  • The Bank of Japan will consider offering a bleaker assessment on factory output than in October at its rate review this month, sources said, underscoring its concern over the broadening fallout from the U.S.-China trade war and slowing global demand.
  • A downgrade in the BOJ’s view on output – a key driver of growth – will cast doubt on its argument that Japan’s economy will sustain a moderate expansion as robust domestic demand make up for weak exports.
  • Retail sales plunged at their fastest pace since early 2015 in October, dashing policymakers’ hopes that the impact from the October tax hike will be moderate.