Economic Information Daily, October 20 - According to several informed sources, the Bank of Japan may raise its inflation forecast for the next fiscal year in the quarterly projections to be released this month, and is expected to keep interest rates unchanged at its policy meeting ending October 30.
The sources indicated that a modest upward revision to the core inflation forecast for the fiscal year 2027 is intended to reflect the impact of the recent surge in crude oil prices.
One of the sources said, 'Consumer prices may remain elevated for a longer period than expected, even though underlying inflation has not undergone significant changes.' Another source noted, 'Inflationary pressures do exist, but there has been no sharp spike, so there is no reason to act hastily.' (yc)
The sources indicated that a modest upward revision to the core inflation forecast for the fiscal year 2027 is intended to reflect the impact of the recent surge in crude oil prices.
One of the sources said, 'Consumer prices may remain elevated for a longer period than expected, even though underlying inflation has not undergone significant changes.' Another source noted, 'Inflationary pressures do exist, but there has been no sharp spike, so there is no reason to act hastily.' (yc)