The Bank of Japan will be closely watching this week’s inflation data and could upgrade inflation forecasts — a move that will crush any near-term hopes of easing.
The BOJ has repeatedly passed up opportunities to signal a dovish bias and now “a person familiar with the bank’s thinking” cited by the WSJ says higher inflation is what some at the central bank are watching.
While many market analysts say the central bank will fall short of its target of 2% inflation by spring next year, some BOJ officials are even becoming worried about inflation rising too quickly.
Those officials are “a bit concerned about upside risks” to prices, a person familiar with the bank’s thinking.
The next round of inflation forecasts will be released April 30. The current fiscal year forecast is 1.3%.
