BOJ to broadly maintain forecast of inflation staying near target in coming years – report

<p>This is related to the quarterly economic outlook report due this month, with the news yesterday here: <a href="https://www.forexlive.com/centralbank/boj-reportedly-considers-lowering-price-outlook-for-fiscal-year-2024-to-middle-2-range-20240111/" target="_blank" rel="follow">BOJ reportedly considers lowering price outlook for fiscal year 2024 to middle 2% range</a></p><p>The sources cited in this report say that the BOJ is likely to cut its core inflation forecast for the fiscal year 2024 (currently 2.8%) amid the recent decline in oil prices. That fits with the linked story from above yesterday. However, policymakers are not likely to make any major changes to their "core core" inflation forecast – expected to stick around 1.9% for both fiscal year 2024 and 2025.</p><p>One of the sources said that "the broad uptrend in inflation and wages remains intact", with another stating that "consumption is holding up and there's growing conviction that wage hikes will continue, and even broaden, this year".</p>

This article was written by Justin Low at www.forexlive.com.