Following are the key highlights from the Bank of Japan’s (BOJ) quarterly outlook report, reported by Reuters.

Key takeaways

Japan's economy likely to recover with easing of impact from coronavirus pandemic, supply constraints.

Price growth expected to narrow towards the middle of next fiscal year.

Prices to deviate upward in fiscal 2024.

Uncertainty over japanese economy extremely high.

Need to pay close attention to effects of financial, currency market movements on japan's economy and prices.

Price outlook skewed to upside.

Inflation expection is on the rise.

Will determine duration of each loan for fund supplying operation against collateral taking into account conditions in markets, duration shall not exceed 10 years.

Amendment to rules on fund supply operations against collateral shall be effective on the days determined by the governor.

Will determine interest rate of each loan to encourage formation of yield curve consistent with guidelines for market operation.

Heightening of price growth is likely to sustainable price increase involving wage hikes.