Channel NewsAsia
AsiaPac · 22 mins ago
BOJ may raise growth forecast, maintain vigilance to inflation risk, sources say
TOKYO, July 10 : The Bank of Japan may revise up its economic growth forecast for fiscal 2026 and keep its focus on the risk of an inflation overshoot as rising costs from a weak yen and strong AI demand offset some of the declines in oil prices, said three sources familiar with its thinking.The BOJ is due to release its quarterly report, including fresh growth and price forecasts, this month and investors will be looking for clues on the timing and pace of further rate hikes following June's increase to 1 per cent.While the central bank may trim its price forecast for fiscal 2026, that is unlikely to signal a change to the BOJ's focus on inflationary risks as companies steadily pass on rising costs, the sources said. They declined to be named as they were not authorised to speak publicly.
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