Japan's Central Bank Is Expected To Cut Inflation Forecasts

Forex News

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.