Economics
BOJ Credibility Hit by Another Downgrade to Inflation Forecasts
Pedestrians walk past the Bank of Japan (BOJ) headquarters in Tokyo, Japan on Jan. 4.
Photographer: Takaaki Iwabu/BloombergThis article is for subscribers only.
The Bank of Japan tarnished the credibility of its price forecasting again with another sharp downgrade of its inflation projections.
Not only did the central bank slash its estimate for core inflation by 0.5 percentage points to 0.9 percent for the fiscal year starting in April, it excluded the likely impact of cheaper phone bills and free education for young children from its calculations.