BOJ May Revise Up Japan Inflation Outlook for FY 2022

Economy Politics

Tokyo, April 20 (Jiji Press)--The Bank of Japan is expected to consider revising up its inflation forecast for fiscal 2022 in a quarterly report to be adopted at its monetary policy meeting on April 27-28.

The BOJ's growth projection for Japan's core consumer price index for the year to March 2023 may be revised to between 1.5 pct and 1.9 pct from the 1.1 pct forecast in the central bank's previous Outlook for Economic Activity and Prices report in January, informed sources said.

The possible upward revision will be due to higher import prices resulting from the yen's recent rapid weakening, as well as surging crude oil prices.

At the two-day meeting, members of the BOJ's Policy Board are seen discussing the impact of the weak yen on the Japanese economy and domestic prices, according to the sources. BOJ Governor Haruhiko Kuroda has shown a sense of caution, saying, "We also need to keep in mind that (the yen's decline) could adversely affect (the Japanese economy)."

The BOJ is expected to keep its current massive monetary easing unchanged.

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