Bank of Japan Poised to Lift Inflation Forecast While Holding Rates Steady
The Bank of Japan is expected to raise its inflation outlook for the coming fiscal year while maintaining current interest rates at its October meeting.
POLICY WIRE — Tokyo, Japan — The Bank of Japan is likely to increase its inflation projections for the upcoming fiscal year in reports scheduled for release this month. Four individuals with knowledge of the central bank’s internal deliberations suggest that persistent upward pressure from rising oil prices is driving the shift.
Following a recent interest rate hike last month, officials are widely expected to maintain current policy settings during the two-day meeting concluding on October 30. Many within the institution prefer to pause and evaluate how previous adjustments have impacted the broader financial landscape before taking further action.
The central bank remains committed to its 2 percent inflation target. Should economic activity and price trends align with current forecasts, the Bank of Japan has indicated it will continue to raise policy interest rates and adjust the level of monetary accommodation accordingly.
Reporting by Policy-Wire (PW)
