BOJ will Increase its Fiscal 2022 Inflation Forecast to Beyond 2%, According to Jiji

Jiji Press reports that the Bank of Japan (BOJ) is expected to increase Japan's outlook on inflation for fiscal 2022–2023 to over the central bank's 2 percent price objective.

July 07, 2022 - 12:15 PM 235 views

BOJ will Increase its Fiscal 2022 Inflation Forecast to Beyond 2%, According to Jiji

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© BOJ will Increase its Fiscal 2022 Inflation Forecast to Beyond 2%, According to Jiji

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Jiji Press reports that the Bank of Japan (BOJ) is expected to increase Japan's outlook on inflation for fiscal 2022–2023 to over the central bank's 2 percent price objective.

The BOJ is apparently considering decreasing its GDP prediction for fiscal 2022, even though it is still completely committed to its easing strategy, according to certain reports that are now making the rounds in Japanese media outlets.

Separately, the most recent Reuters survey of analysts indicated that despite the growing US-Japan rates disparity, the USD/JPY pair will continue to trade above the important psychological level of 130.00 during the next six months.

Important Findings

"The median projection was for the Japanese yen to increase to 131 per dollar in six months' time, compared to 126.84 in the forecast last month, meaning it would remain lower than the 130-yen-per-dollar level," according to the report.

Seven out of 61 respondents said that the yen will be less strong in six months, including four who predicted that it would be at 140.

Japan was unlikely to intervene in the foreign exchange market to halt the yen from falling, despite the currency losing almost 15% against the dollar this year.

The Market Reaction

The USD/JPY exchange rate is currently trading off its lows at 135.69, down 0.19 percent for the day.

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