BOJ to raise inflation view for fiscal 2022 to above 2% - Jiji
According to Jiji Press, the Bank of Japan (BOJ) is seen raising Japan’s view on inflation for fiscal 2022/23 to above the central bank price target of 2%.
Meanwhile, some headlines are hitting the wires, via Japanese media outlets, the BOJ is reportedly considering lowering its GDP forecast for fiscal 2022., as it remains fully committed to its easing policy.
Separately, the latest Reuters poll of economists predicted the USD/JPY pair to remain above the key psychological level of 130.00 over the next six months amid the widening US-Japan yields differential.
Key findings
“The median forecast was for Japan's currency to strengthen to 131 per dollar in six months' time, compared with 126.84 in last month's forecast, meaning it would stay weaker than the 130-yen-per-dollar level.”
“Seven of 61 respondents projected the yen to be at a weaker level than that six months from now, including four forecasting it to be at 140.”
“Despite the yen's rapid decline this year - it has lost about 15% against the greenback - Japan was unlikely to intervene in the FX market to stop it from sliding.”
Market reaction
At the time of writing, USD/JPY is off lows, trading at 135.69, still losing 0.19% 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.
