Japan's Central Bank Is Expected To Cut Inflation Forecasts
The Japan’s central bank is likely to reduce its inflation forecasts for this fiscal year and the year to March 2020 at a meeting later this month. It is reported, that the Bank of Japan will cut its projection for core consumer price growth this fiscal year to around 1.0% from the 1.3% projected in April, and for next year to around 1.5% from 1.8%.
The core consumer price index, which includes oil products but excludes volatile fresh food prices, rose 0.7% in May from a year earlier, the same rate as April and far below the BoJ’s target of 2%.
According to the Japanese central bank’s Tankan survey, companies are awaited consumer prices to have risen 0.9% a year from now, slightly above their projection of 0.8% three months ago. Companies in the survey also expected consumer prices to have risen an annual 1.1% three years from now and 1.1% five years ahead, suggesting little confidence in the Bank of Japan's 2% target being reached anytime soon.