(MENAFN) Japan's central bank cut its economic growth and inflation forecasts, as analysts warned over a disappointing second quarter that underscores the wobbly success of Tokyo's Abenomics growth project, Oman Observer reported.
Bank of Japan (BoJ) said the economy would expand 1.7 percent in the year to March 2016, while inflation would come in at 0.7 percent. That was down from 2.0 percent and 0.8 percent, respectively, estimated earlier this year.
The BoJ chief insisted that any downturn would be short-lived and that policymakers still expect to hit their inflation target by next year, a cornerstone of efforts to bolster the world's number three economy.
While the bank kept up its view that Japan's economy was recovering "moderately", it acknowledged that a pick-up in exports and industrial production had seen "some fluctuations".
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