BOJ likely to increase price forecast by notable margin

Bloomberg

The Bank of Japan (BOJ) is likely to consider notable changes in its inflation and growth forecasts later this month mainly due to soaring oil and commodity prices, gains that aren’t viewed as sustainable, according to people familiar with the matter.
The central bank will probably raise its projection for growth in key consumer prices to between around 1.5% and 1.9% for the year started this month, compared with a 1.1% forecast in January, according to the people.
The BOJ will also probably lower its growth forecast for the year from its current 3.8% projection, the people said.
The bank will release the forecasts in its quarterly economic outlook report on April 28 after concluding a two-day meeting.
The BOJ is updating its forecasts as global central banks accelerate moves to tackle inflation with interest rate increases, a direction that Governor Haruhiko Kuroda has steadfastly rejected for now.
The bank will need to make clear that the updated forecasts don’t mean it is approaching its price stability target and that cost-push inflation is putting the economy at risk of a slowdown, the people added.
BOJ officials don’t see a need to tighten the bank’s monetary stimulus in the same way as the Federal Reserve and others, the people said. As Kuroda has repeatedly said in recent weeks, the bank must support the economy by keeping its stimulus in place, they said.