BOJ to consider changing inflation forecasts amid government travel campaign - report

Author: Justin Low | Category: Central Banks

Bloomberg reports, citing people familiar with the matter

The report says that the BOJ is likely to consider changing its inflation forecasts at its monetary policy meeting next week, to reflect the short-term impact on prices of the government's travel campaign (more on the campaign here).

The BOJ is said to probably discuss cutting its inflation forecast for this fiscal year to account for the downward pressure on prices - due to the discounts offered - from the 'Go To' travel campaign - which is currently set to run through to 31 January 2021.

That said, the sources say that the downgrade in the projections will not trigger any additional action by the BOJ with discussions to also look at the upward pressure set to take place when the campaign is no longer in operation.

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Well, travel campaign or not, the pandemic has certainly weighed heavily on price pressures and inflation is continuing to head in the wrong direction in Japan:
 
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