Bank of Japan cuts growth outlook, pushes back inflation target

People crossing a street at a business district in Tokyo on Oct 30, 2015.
People crossing a street at a business district in Tokyo on Oct 30, 2015.PHOTO: REUTERS

TOKYO (AFP) - The Bank of Japan on Friday (Oct 30) cut its growth outlook for the world's third-largest economy and pushed back the timeframe for reaching a key inflation target, as the country's economy stalls.

The central bank said it now expected growth to come in at 1.2 per cent in the fiscal year to March 2016, down from an earlier 1.7 per cent projection.

It also forecast it would reach its 2 per cent inflation target in the six months ending March 2017 - about half a year later than previously expected.