The Bank of Japan (BoJ), in its quarterly economic forecast report, chose to maintain the inflation prediction for the current fiscal year at 2.7%, which will end on March 31, 2026. The decision comes amid a noted reduction in food price increases, particularly rice, which had previously contributed to rising indices.
The Japanese institution decided to leave its forecasts for the fiscal years 2026 and 2027 unchanged.
The BoJ highlighted in the report various risks that could impact the country’s economy, including uncertainty about international economic activities, and the reaction of prices in trade and other policies in different jurisdictions.
“It is necessary to pay attention to the impact of these developments on financial and currency markets, as well as on economic activity and prices in Japan,” the report stated.
The BoJ’s forecast report was released following the conclusion of a two-day monthly monetary policy meeting, in which the Japanese central bank decided, for the sixth consecutive time, to keep the benchmark interest rate at 0.5%.
