BOJ downgrades economic assessment for 4th month in a row.TOKYO, Sept. 20 Kyodo The Bank of Japan (BOJ BOJ Bank Of Japan BOJ Bank of Jamaica BOJ Bourgas, Bulgaria (Airport Code) BOJ Beginning of Job ) on Thursday downgraded its assessment of the nation's economy for the fourth straight month, saying the negative impact of falling exports has affected employment, income and production. ''Adjustments in economic activity are becoming more severe, as the substantial decline in production, starting from a fall in exports, is beginning to have a negative influence on employment and income conditions,'' the central bank said in a monthly report on economic and financial developments. In August, the BOJ said, ''Adjustments in economic activities are intensifying further, reflecting a substantial decline in exports and production.'' The BOJ said in the latest monthly report that net exports continue to decline because of a slowdown in overseas economies and sluggish demand for information technology (IT)-related products. Corporate capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. is ''decreasing noticeably'' and industrial production continues to ''decline considerably'' due to weak exports and sluggish demand for IT-related products, the report said. As a result, corporate profits and business sentiment are worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension , particularly among manufacturing companies, it said. ''Affected by such developments, household income is weakening gradually,'' it said. As for the economic outlook, the central bank painted a bleak picture because exports are likely to continue decreasing for a while and industrial production is expected to follow the declining trend. ''Overall, adjustments in economic activity, starting from the decline in exports, are expected to have a negative influence on domestic demand gradually and this in turn will possibly prolong the ongoing adjustments,'' the report said. The BOJ said uncertainty over the outlook of the global economy, particularly of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , is ''growing further'' as the global economy also continues to decelerate de·cel·er·ate v. de·cel·er·at·ed, de·cel·er·at·ing, de·cel·er·ates v.tr. 1. To decrease the velocity of. 2. . ''It is necessary to carefully monitor the effects of the terrorist attacks in the U.S. on global financial markets and economic activity,'' the central bank also said. On Tuesday, the BOJ decided to further ease its grip on credit, including a cut in its official discount rate by 0.15 percentage point to 0.10% per annum Per annum Yearly. , in order to help quell quell tr.v. quelled, quell·ing, quells 1. To put down forcibly; suppress: Police quelled the riot. 2. fears of a global recession in the wake of last week's terrorist attacks in the U.S. The rate cut followed similar moves by the U.S. Federal Reserve and the European Central Bank European Central Bank (ECB) Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, , both of which lowered key interest rates Monday. |
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