The Bank of Japan is considering lowering its economic assessment when its policy board meets early next month after a massive earthquake and tsunami sharply hurt production and personal spending, Yomiuri newspaper reported on Thursday. BOJ Governor Masaaki Shirakawa said last week the country's economy was in a severe state after the devastating earthquake on March 11, suggesting that the central bank may paint a bleaker view of the economy at its next rate review.
The central bank is likely to say that "uncertainty is rising" in the world's third biggest economy when its policy board meets next on April 6-7, the newspaper said without citing sources. It would be the first downgrade of the BOJ's economic assessment since last October, Yomiuri said.
The BOJ eased monetary policy earlier this month by boosting its asset buying pool but is far from done loosening its grip on credit. It has signalled it would be ready to act further once it has scrutinised data offering additional clues on the quake's damage to the economy.
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