By Leika Kihara
TOKYO (Reuters) – The Bank of Japan (BOJ) is set to keep monetary policy steady next week and offer a cautiously optimistic view on the economic outlook, signaling it has taken enough steps for now to cushion the blow from the coronavirus pandemic, sources told Reuters.
The BOJ may slightly cut its growth forecast for the current year to March 2021, but will stick to its view Japan is headed for a moderate recovery later this year as the pandemic’s impact subsides, the sources familiar with its thinking said.
“The economy will remain weak for some time but isn’t falling off a cliff,” one of the sources said.
“Risks to the outlook are skewed to the downside,” the source added, a view echoed by two others who spoke on condition of anonymity