BOJ is said to likely downgrade inflation forecast for FY 2019 at next week's meeting

Author: Justin Low | Category: News

Bloomberg reports, citing people familiar with the matter

The report says that the BOJ will probably lower its inflation forecast for the current fiscal year and could also downgrade some of its economic projections at next week's meeting. Do be reminded that the BOJ will announce their latest monetary policy decision on Tuesday, 30 July next week.

The sources cited say that the BOJ is likely to lower its current price forecast of 1.1% to reflect subdued price growth in recent months and will also discuss how a downgrade would weigh on price forecasts for later years.

For some context, this is the BOJ's latest economic forecast (made back in April) and they will be updating it at next week's meeting. Even at the time, they were considerably "too optimistic" despite a minor downgrade so a further downside revision wouldn't be the most surprising element of next week's policy decision.

USD/JPY holds at session highs currently at 108.19, with the dollar still holding firm.

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