BOJ likely to raise CPI forecast to 2% range – report

Nikkei is out with a Bank of Japan scoop ahead of Tuesday’s meeting and decision.

  • The Bank of Japan is likely to raise its consumer price index outlook for fiscal 2024 (starting in March) to the 2% growth range at next week’s meeting
  • The current forecast is 1.9%
  • Today’s Tokyo CPI data showed 3.3% y/y inflation and 2.7% ex-fresh food vs 2.5% expected
  • The latest forecasts will take into account government subsidies for electricity and gas
  • The BOJ will also discuss yield curve control and revising it

All the talk next week is about the FOMC but with USD/JPY flirting with 150.00 and the BOJ on the wrong side of the monetary scale, the Bank of Japan decision is much more interesting.

Note that much of this was leaked earlier, so this shouldn’t move markets but it could go some way to explaining the USD/JPY weakness today.

This article was written by Adam Button at Source