BoJ likely to raise inflation forecast

Inflation worries: Fishermen land scallops at Nemuro Port in Hokkaido. Rising raw material costs caused by the Ukraine war have hurt global trade and domestic consumption in Japan. — Reuters

TOKYO: The Bank of Japan (BoJ) 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.