BoJ warns of export hit

“While overseas demand remains strong, the supply shock from South-East Asia has put an unexpected damper on output,” said a source familiar with the BoJ’s thinking, a view echoed by three other sources.(File pic shows BoJ building)

TOKYO: The Bank of Japan (BoJ) is expected to offer a slightly bleaker view on exports and output this month, or warn of heightening risks from supply disruptions caused by factory shutdowns in South-East Asia, said sources familiar with its thinking.

The gloomier assessment, combined with weaker-than-expected consumption in August due to coronavirus curbs, could cast doubt on the BoJ’s view that the economy was on track for a moderate recovery as it gears up for its policy meeting on Sept 21-22.