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Bank of Japan (BOJ) expects Japan's economy to grow moderately in FY2026, accelerating from FY2027 as crude oil price effects wane, supported by AI demand
The Bank of Japan (BOJ) released its Summary of Opinions from the July 30-31 Monetary Policy Meeting, noting that Japan's economy has recovered moderately despite some weakness from the Middle East situation. The BOJ anticipates moderate economic growth in fiscal 2026, albeit at a decelerated rate due to crude oil prices, supported by global AI-related demand and government measures. Growth is expected to accelerate from fiscal 2027 as high crude oil price effects diminish.
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