Japan's growth forecast cut sharply

TOKYO, Oct. 31 (UPI) -- Japan's central bank, noting the nation's slowing economy, Friday drastically cut fiscal 2008 growth forecast to 0.1 percent from its July 1.2 percent estimate.

Blaming the slowdown on the global financial crisis, the Bank of Japan in its twice-a-year Outlook for Economic Activity and Prices didn't hold out for any significant improvement in fiscal 2009 starting next April.

The bank's growth forecast for next year is 0.6 percent, down from its earlier forecast of 1.5 percent. For fiscal 2010, the forecast is 1.7 percent.

The bank also estimated the nation's inflation rate for this fiscal year at 1.6 percent, down from previous forecast of 1.8 percent.