BoJ cuts economic growth forecasts

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TOKYO, July 15 (AFP): Japan's central bank today lowered its growth forecast for Asia's largest economy to 1.2 per cent in the current fiscal year to March from 1.5 per cent previously as domestic demand weakens.

The Bank of Japan (BoJ) also trimmed its forecast for gross domestic product (GDP) growth in the next fiscal year to 1.5 per cent from 1.7 per cent.

"Economic growth is slowing further reflecting weaker growth in business fixed investment and private consumption against the backdrop of high energy and materials prices," the central bank said in a statement.

The statement came after the bank left its benchmark interest rate on hold at 0.5 per cent.

"While growth will likely remain slow for the time being, it is expected to gradually return onto a moderate growth path thereafter," it predicted.