BOJ Ups CPI Forecasts, Keeps Policy Steady

Tokyo, Oct. 28 (Jiji Press)--The Bank of Japan on Friday announced an upward revision to its core consumer price index forecasts on higher import prices reflecting the yen’s weakness, while keeping its monetary policy unchanged.

In its latest quarterly Outlook for Economic Activity and Prices report, adopted at a two-day Policy Board meeting from Thursday, the BOJ said that the core CPI in fiscal 2022 is forecast to rise 2.9 pct from the previous year, up from 2.3 pct in the previous report released in July.

The growth projection for the core index, which excludes often volatile fresh food prices, was raised to 1.6 pct from 1.4 pct for fiscal 2023 and to 1.6 pct from 1.3 pct for fiscal 2024.

Meanwhile, the BOJ forecasts that Japan’s real gross domestic product will expand 2.0 pct in fiscal 2022, down from the previously projected 2.4 pct. The GDP growth outlook was revised to 1.9 pct from 2.0 pct for fiscal 2023 and to 1.5 pct from 1.3 pct for fiscal 2024.

The latest CPI projections are stronger than the previous forecasts, mainly for fiscal 2022, because cost increases driven by higher import prices have led to rises in consumer prices, the BOJ said.

[Copyright The Jiji Press, Ltd.]