Japans economy may shrink by 0.4pc: central bank

Japans economy is expected to shrink 0.4 percent in fiscal 2011, the Bank of Japan forecast Tuesday, a reversal of its previous projection of 0.3 percent growth.The central bank said it expected growth of 2.0 percent in fiscal 2012, a slight reduction from its previous prediction of 2.2 percent growth.The bank also left its key interest rate unchanged at between zero and 0.1 percent, saying its policy board vote on the issue was unanimous.It projected deflation for fiscal 2011 at -0.1 percent with inflation of 0.1 percent is fiscal 2012, compared with previous forecasts of zero percent and 0.1 percent respectively.