Daiwa Securities economist Kento Minami says last week’s optimistic BOJ meeting
summary suggests the Bank of Japan will adopt a neutral assessment of economic
risks in its July quarterly outlook, reversing April’s characterization of risks
as tilted to the downside. He warns that with downside risks fading and upside
risks to prices now dominant, the July outlook will shape policy; if growth
stabilizes and inflation risks remain elevated, the BOJ could have scope to
tighten earlier and faster than currently expected to rein in prices.
