BoJ’s cautious price forecasts likely to cool normalisation talk

The cautious forecast will likely cool any speculation that the BoJ might start gearing up to normalise policy during governor Haruhiko Kuroda’s last full year at the helm.

TOKYO: The Bank of Japan (BoJ) adjusted its view of inflation risks for the first time since 2014 but only nudged up its price forecasts a fraction, a combination that suggests moves toward phasing out stimulus are still a distant prospect.

The central bank kept its negative interest rate, bond yield target and asset purchases unchanged at the end of its meeting yesterday.