BOJ may lift FY 2022 inflation outlook on weak yen, high commodities

The Bank of Japan is considering revising upward its inflation outlook for the current fiscal year to next March, factoring in a bigger-than-expected impact from the yen’s sharp drop and higher commodity prices, sources familiar with the matter said Monday.

When the BOJ holds its regular two-day policy meeting next week, it will likely forecast core consumer inflation to rise above 2.5 percent in fiscal 2022, up from 2.3 percent projected in July, the sources said.

The Japanese central bank is widely expected to maintain its ultralow rate policy as the pace of economic recovery will likely slo...