Japanese media report the BOJ is likely to raise its FY2023 inflation forecast above 2%

<p>Yomiuri with the report on the Bank of Japan. </p><p>The Bank meet on July 27 and 28 and will revise forecasts at this meeting. </p><p>Can the bank hold off from further tweaks to YCC if they expect the CPI to hold above target? The Bank has been insistent they see CPI falling from around September/October this year. but if it remains above 2% why the need to hold on to ultra loose policy? </p><p>USD/JPY has collapsed this week, based on speculation of a tweak or change from the BOJ this month.</p><p>We were fanning the flames of this speculation a couple of weeks ago:</p><ul><li><a href="https://www.forexlive.com/centralbank/heads-up-folks-the-july-27-28-bank-of-japan-meeting-is-going-to-be-huge-ycc-pivot-20230626/" target="_self" rel="follow">Heads up folks, the July (27, 28) Bank of Japan meeting is going to be huge – YCC pivot</a></li><li><a href="https://www.forexlive.com/centralbank/more-from-the-boj-june-meeting-summary-one-member-called-for-early-revision-of-ycc-policy-20230626/" target="_self" rel="follow">More from the BOJ June meeting summary: One member called for early revision of YCC policy</a></li><li><a href="https://www.forexlive.com/centralbank/usdjpy-lower-after-the-boj-says-cpi-may-not-drop-below-2-20230626/" target="_self" rel="follow">USD/JPY lower after the BOJ says CPI may not drop below 2%</a></li><li><a href="https://www.forexlive.com/centralbank/boj-says-strong-chance-cpi-will-moderate-but-not-to-back-below-2-by-mid-fiscal-year-20230626/" target="_self" rel="follow">BOJ says strong chance CPI will moderate, but not to back below 2% by mid fiscal year</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.