Informed Sources: The BOJ May Raise its Inflation Forecast this Year and Keep it Unchanged Next Year

Bank of Japan officials are likely to raise their inflation forecasts for the current fiscal year above 2% at their July meeting, but keep inflation forecasts for the next year largely unchanged or may even be lowered, according to informed sources.
While the upward revision to the inflation forecast is likely to reflect stronger-than-expected price growth this year, forecasts are expected to point to a moderation in inflation in the fiscal year starting in April 2024.
The BOJ’s latest inflation forecast for the next fiscal year is 2%.
The central bank will have until the last minute to finalize its new inflation forecast after reviewing economic data and financial markets, the informed sources said.
The BOJ will release a new quarterly outlook report at the end of its policy meeting on July 28.