BOJ likely to raise inflation forecast near 2%, vow to keep easy policy - sources

FILE PHOTO: A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID19) outbreak in Tokyo

TOKYO: The Bank of Japan is likely to raise its inflation forecast for the current fiscal year to near 2% at this month's policy meeting as global commodity inflation drives up energy and food costs, said three sources familiar with its thinking.

While the upgrade will bring inflation closer to its 2% target, the central bank will stress its resolve to keep monetary policy ultra-loose to underpin a fragile economic recovery, the sources said.