At its monetary policy meeting on January 17-18, the Bank of Japan (BOJ) is expected to make upward revisions to its inflation forecast for the fiscal year 2022-2023, in light of rising energy cost, Reuters reports, citing sources with knowledge of the matter.
Key highlights
“With price hikes broadening on rising fuel and raw material costs, the board is likely to project inflation exceeding 1% in the next fiscal year.”
“Easing supply constraints and an expected boost from the government's stimulus package may also lead to an upgrade in the BOJ's growth projection for next fiscal year.”
“The nine-member board now expects the economy to grow by 2.9% next fiscal year after this year's 3.4% expansion.”
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