BOJ seen dropping rate hike stance - paper

TOKYO, April 21 (Reuters) - The Bank of Japan is likely to drop a reference to raising interest rates from its next semi-annual economic report in light of increasing economic downside risks such as a surge in raw material prices, a Japanese newspaper reported.

The central bank's policy board was likely to cut its forecast for Japan's growth for the year to March 2009 to around 1.5 percent, from 2.1 percent published in the previous report in October, the Asahi Shimbun said.

The BOJ's report on the outlook for economy and prices is scheduled for release on April 30. (Reporting by Yuzo Saeki; Editing by Rodney Joyce)