Bloomberg published an article claiming that the BoJ is considering raising its inflation forecasts after the strong results of recent wage negotiations in Japan.
- Core CPI expected to be revised upwards with price growth forecast near 2%
- The report also notes that officials should be mindful of potential risks of lower inflation when considering budget projections for 2026.
There was a slight decline in USDJPY after the news, but some of the movement has already faded.
I don’t think this changes much for the BoJ’s outlook, not after recent speeches and comments.
But the BoJ loves to play with the markets through its mixed communications, and that may well be what is at work.
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