The Bank of Japan is likely to slightly cut next fiscal year’s inflation forecast in a quarterly review, sources familiar with its thinking say, but the central bank isn’t expected to ease in the near term after having revamped its policy framework only last month.
Many central bank policymakers see little need to expand stimulus any time soon, including at the next two-day rate review concluding on Nov. 1, unless an abrupt yen spike threatens to derail a fragile recovery, the sources said.
Analysts say the BOJ would be in no rush to ease because its new policy framework, which targets interest rates rather than base money, is one better suited for a long-term battle to reach its ambitious 2 percent price goal.
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