Bank of Japan sees big boost from Abe's economic stimulus package

When the Abe administration introduced economic stimulus measures in 2016, the BOJ raised its growth forecast for the following fiscal year to 1.3 per cent from 0.1 per cent.
When the Abe administration introduced economic stimulus measures in 2016, the BOJ raised its growth forecast for the following fiscal year to 1.3 per cent from 0.1 per cent.PHOTO: AFP

TOKYO (BLOOMBERG) - Bank of Japan (BOJ) officials see a sizable impact from stimulus measures launched by Prime Minister Shinzo Abe last week, raising the likelihood that the central bank will upgrade its economic forecasts for the first time in a year next month, according to people familiar with the matter.

The possibility of higher growth projections would likely strengthen a building view among economists that the BOJ will stand pat on its key policy measures at its meeting next week and for some time to come, barring unexpected developments in US-China trade talks, markets or economic data. While the BOJ will announce a policy decision on Dec 19, its next quarterly review of forecasts isn't due until its January meeting.

The officials expect the government's stimulus package will give a clear boost to the economy from the fiscal year starting in April, the people said.

When the Abe administration introduced economic stimulus measures in 2016, the BOJ raised its growth forecast for the following fiscal year to 1.3 per cent from 0.1 per cent.