BOJ Price Forecast Stops Short of 2 Pct Goal

Economy Politics

Tokyo, April 27 (Jiji Press)--The Bank of Japan said Tuesday that it expects consumer prices in the country to rise 1.0 pct in fiscal 2023, short of its 2 pct goal.

The forecast, unveiled in a quarterly outlook report released after a two-day monetary policy meeting, means that the central bank is unlikely to achieve its inflation goal during Governor Haruhiko Kuroda's current term, which expires in April 2023.

The BOJ said its board voted 8-1 to maintain its massive monetary easing policy of guiding short-term interest rates at minus 0.1 pct and 10-year government bond yields around zero pct.

The quarterly report said the Japanese economy is expected to grow 4.0 pct in fiscal 2021, which started this month, an upward revision from the previous estimate of a 3.9 pct expansion.

The economy "has picked up as a trend, although it has remained in a severe situation due to the impact of COVID-19 at home and abroad," the report said.

[Copyright The Jiji Press, Ltd.]

Jiji Press