The Bank of Japan (BoJ) will hold its second Monetary Policy Committee meeting for April on 30 April, at which it will conduct its semi-annual review of GDP and inflation forecasts. It is expected to lower its inflation forecast for FY15 (starting in April 2015), owing to the recent downtrend in inflation. It will also likely to lower its FY15 GDP growth forecast given subdued economic momentum in Q1. The likely lower inflation forecast indicates a need for the BoJ to take measures to meet its inflation target. It is expected to increase its current asset purchase programme by at least JPY 10tn and extend the timeline for achieving its inflation target by a year. Japan will also release March industrial production (IP) data on 30 April.“We expect IP to have increased 1.5% m/m, in line with the pick-up in exports to the US and China”,Said Standard Chartered in a report on Tuesday.
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