The Bank of Japan is likely to maintain this month its projection that the economy will gradually recover from the damage wrought by the coronavirus pandemic in the latter half of this year, sources said.
Such a view would reinforce market expectations that it will forgo bold monetary easing steps at its June rate review, after the BOJ and the government unveiled a slew of support measures for businesses in the last few months.
But it would contrast with the European Central Bank's move on Thursday to offer a bigger-than-expected expansion of its stimulus package to prop up the economy.
The BOJ's optimism reflects its growing conviction that the world's third-largest economy hit bottom in April or May, when lockdown steps kept citizens home and businesses shut, said four sources familiar with the central bank's thinking.
"There aren't enough factors that would force the BOJ to alter its view the economy will emerge from the doldrums in latter half of this year as the pandemic subsides," one of the sources said, a view echoed by three other sources.
That stance would reduce the likelihood of interest rate cuts or a massive increase in asset purchases at the BOJ's June 15-16 rate review.
Still, many central bankers warn of risks that could slow the pace of recovery, such as a renewed spike in infections, rising job losses and a bigger-than-expected slump in emerging economies.
"The April-June quarter is probably the bottom for Japan's economy. But the slump in growth may become bigger and the rebound slower than initially thought," a second source said.
Fund aid, not stimulus
The BOJ eased monetary policy for two straight months in April, joining government efforts to cushion the blow from the pandemic on an economy already sliding into deep recession.
Steps so far have focused on easing corporate funding strains, such as increased purchases of corporate debt and the creation of lending facilities to help small firms.
While its US and European counterparts are shifting from crisis response towards steps to reflate growth, the BOJ remains wary of using tools directly aimed at stimulating demand - such as rate cuts - too hastily, the sources said.
That means the BOJ's most likely option, even if it were to act in coming months, would be to expand its lending facility or take new steps to ease stress on companies, they said.
"There's no point trying to stimulate the economy now when the government is still asking people to stay home as much as possible to contain the pandemic," a third source said.
Prime Minister Shinzo Abe announced a state of emergency in April requesting citizens to stay home and businesses to close, hammering an economy that was already suffering from the hit from a sales tax hike last year and the US-China trade war.
While Japan lifted lockdown measures in May, analysts expect the economy to contract by an annualised 22 per cent in the current quarter and recover only modestly in the second half of this year.
"Japan's economy will rebound in July-September if there's no renewed spike in infections. Even so, it may take until 2023 or 2024 for the economy to climb back to levels before the pandemic hit," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
"The BOJ may not need to act now. But if job losses start to spike, it may come under pressure to loosen policy again."
Read more about the coronavirus
BOSH!'s pantry essentials
Nutritional yeast
This is Firth's pick and an ingredient he says, "gives you an instant cheesy flavour". He advises making your own cream cheese with it or simply using it to whip up a mac and cheese or wholesome lasagne. It's available in organic and specialist grocery stores across the UAE.
Seeds
"We've got a big jar of mixed seeds in our kitchen," Theasby explains. "That's what you use to make a bolognese or pie or salad: just grab a handful of seeds and sprinkle them over the top. It's a really good way to make sure you're getting your omegas."
Umami flavours
"I could say soya sauce, but I'll say all umami-makers and have them in the same batch," says Firth. He suggests having items such as Marmite, balsamic vinegar and other general, dark, umami-tasting products in your cupboard "to make your bolognese a little bit more 'umptious'".
Onions and garlic
"If you've got them, you can cook basically anything from that base," says Theasby. "These ingredients are so prevalent in every world cuisine and if you've got them in your cupboard, then you know you've got the foundation of a really nice meal."
Your grain of choice
Whether rice, quinoa, pasta or buckwheat, Firth advises always having a stock of your favourite grains in the cupboard. "That you, you have an instant meal and all you have to do is just chuck a bit of veg in."
Rajasthan Royals 153-5 (17.5 ov)
Delhi Daredevils 60-4 (6 ov)
Rajasthan won by 10 runs (D/L method)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Results:
6.30pm: Handicap (Turf) | US$175,000 2,410m | Winner: Bin Battuta, Christophe Soumillon (jockey), Saeed bin Suroor (trainer)
7.05pm: UAE 1000 Guineas Trial Conditions (Dirt) | $100,000 | 1,400m | Winner: Al Hayette, Fabrice Veron, Ismail Mohammed
7.40pm: Handicap (T) | $145,000 | 1,000m | Winner: Faatinah, Jim Crowley, David Hayes
8.15pm: Dubawi Stakes Group 3 (D) | $200,000 | 1,200m | Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.50pm: Singspiel Stakes Group 3 (T) | $200,000 | 1,800m | Winner: Dream Castle, Christophe Soumillon, Saeed bin Suroor
9.25pm: Handicap (T) | $175,000 | 1,400m | Winner: Another Batt, Connor Beasley, George Scott
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Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
'Cheb%20Khaled'
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RESULTS
Mumbai Indians 181-4 (20 ovs)
Kolkata Knight Riders 168-6 (20ovs)
Mumbai won by 13 runs
Rajasthan Royals 152-9 (20 ovs)
Kings XI Punjab 155-4 (18.4 ovs)
Kings XI Punjab won by 6 wickets
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Mohammed bin Zayed Majlis
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Bombshell
Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
