MNI BRIEF: BOJ Raises FY Inflation View To 1.9%, Lowers GDP
The Bank of Japan board on Thursday upgraded its forecast for core consumer prices this fiscal year to +1.9% from +1.1% in January but lowered the real economic growth forecast to +2.9% from +3.8%, the Outlook Report released on Thursday showed.
The higher inflation view in the fiscal year started April 1, is due mainly to the fading impact of lower mobile phone charges in or after April and higher crude oil prices after the January meeting.
The core CPI is expected up close to the 2% the BOJ target, but it is far from sustained gains at that level, prompting the BOJ to maintain a monetary policy easing bias. The median forecasts for GDP and inflation in fiscal 2024 – the first forecast -- were +1.1% and +1.1%, respectively, see: MNI BRIEF: BOJ Keeps Forward Guidance Intact In Policy Hold.