Japanese central bank lowers economic growth forecast to 0.6%
2011-04-29 11:52:01
The Bank of Japan (BOJ) announced Thursday that it downgraded the country's economic growth forecast for 2011 to 0.6 percent from 1.6 percent amid the aftermath of the twin disasters in March.
Meanwhile, the Japanese central bank upgraded the gross domestic product (GDP) growth forecast to 2.9 percent for 2012 from an earlier projection of 2.0 percent. The domestic demand is expected to rise in the year when reconstruction work is widely carried out in the disaster-hit zone.
In addition, the BOJ decided earlier Thursday to keep its key interest rate steady at between zero to 0.1 percent and unveiled details of its 1 trillion yen (about 12 billion U.S. dollars) lending plan for banks in disaster-hit areas.
A 9.0-magnitude earthquake hit the Pacific coastal areas of northeastern and eastern Japan on March 11, triggering enormous tsunami.
Heavy casualties and extensive damage have been caused by the twin disasters. About 130,000 survivors are staying in 2,300 shelters across the country.