BOJ likely to raise CPI forecast to 2% range – report

<p><a href="https://asia.nikkei.com/Economy/Bank-of-Japan/BOJ-to-discuss-raising-fiscal-2024-inflation-outlook-over-2" target="_blank" rel="nofollow">Nikkei is out </a>with a Bank of Japan scoop ahead of Tuesday's meeting and decision.</p><ul><li>The Bank of Japan is likely to raise its consumer price index outlook for fiscal 2024 (starting in March) to the 2% growth range at next week's meeting</li><li>The current forecast is 1.9%</li><li>Today's Tokyo CPI data showed 3.3% y/y inflation and 2.7% ex-fresh food vs 2.5% expected</li><li>The latest forecasts will take into account government subsidies for electricity and gas</li><li>The BOJ will also discuss yield curve control and revising it</li></ul><p>All the talk next week is about the FOMC but with USD/JPY flirting with 150.00 and the BOJ on the wrong side of the monetary scale, the Bank of Japan decision is much more interesting.</p><p>Note that much of this was leaked earlier, so this shouldn't move markets but it could go some way to explaining the USD/JPY weakness today.</p>

This article was written by Adam Button at www.forexlive.com.