BOJ to raise inflation forecast above 2% but maintain dovish bias – Reuters

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) is expected to raise the FY2022 inflation forecast to slightly above 2% from the current 1.9% in the quarterly outlook report due July 21, Reuters reports, citing sources.

Also read: BOJ to raise inflation view for fiscal 2022 to above 2% - Jiji

Additional takeaways

BOJ expected to cut fiscal 2022 economic growth forecast from current +2.9% in quarterly report.

BOJ to warn of risks from global slowdown at quarterly report.

Report may tone up view on inflation expectations.

BOJ likely to maintain ultra-low interest rates, dovish policy bias.

Market reaction

USD/JPY is off the daily highs of 136.23, currently trading at 135.95, almost unchanged on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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