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BOJ Considers Changing Inflation Forecasts Over Travel Program

  • Policy board is said likely to mull lower FY20 CPI projection
  • Central bank is said set to play down temporary price impact
Life Under Tokyo’s Rail Tracks
Photographer: Noriko Hayashi/Bloomberg
Updated on

The Bank of Japan is likely to consider changing its inflation forecasts to reflect the short-term impact on prices of a government travel campaign at its policy meeting next week, according to people familiar with the matter.

The central bank will probably discuss cutting its price projection for the year ending in March to account for the downward price pressure of Prime Minister Yoshihide Suga’s Go To Travel campaign, the people said. The campaign offers subsidized domestic travel. A downgrade of the projection wouldn’t trigger any additional BOJ action, the people added.