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15 Apr 2022
Bank of Japan Gears Up to Forecast Highest Inflation in 30 Years
The Index Today
The Bank of Japan (BOJ) is expected to announce the highest annual inflation in 30 years later this month when the central bank is due to refresh its financial forecasts.
According to Bloomberg News, this will put BOJ Governor Haruhiko Kuroda in a tough spot as he insists on relying on stimulus even as other central banks across the world hike interest rates to counter soaring inflation.
As per a survey, economists predict key consumer prices to rise by 1.8% for the year beginning in April, in contrast to the BOJ’s forecast of 1.1%. However, analysts at SMBC Nikko Securities place the inflation spike for this fiscal year at 2.5%, reported Bloomberg News.
Hamagin Research Institute’s Chief Economist Eiji Kitada said, “The BOJ will try to make it clear that it won’t pivot even with an upgrade of its inflation forecast.” He added, “It’s just natural to upgrade the inflation outlook after energy prices have soared. What’s important is how they judge its sustainability.”