Central Banks
BOJ Is Likely to Keep Next Year’s Price Forecast Around 2%
- Inflation forecast for this year is said to be raised above 2%
- Options market attribute high chance of a policy tweak in July
Economists see Japan’s inflation averaging 2.6% this fiscal year, according to a survey this month.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Bank of Japan officials will likely raise their inflation forecast above 2% for this fiscal year at their July meeting, but their view for the following year is largely unchanged and may even be nudged down, according to people familiar with the matter.
While the likely upgrade will reflect stronger-than-expected price growth this year, the forecasts will show inflation slowing in the year starting April 2024. The BOJ’s latest projection for next fiscal year is 2%.