BOJ likely to raise inflation forecast near 2%, vow to keep easy policy – sources

div classBodysc17zpet90 cdBBJodivpTOKYO Reuters – The Bank of Japan is expected to raise its inflation forecast for the current fiscal year to near 2 at this months policy meeting as global commodity inflation drive up energy and food costs, said three sources familiar with its thinking.p

pWhile the upgrade will bring inflation closer to its 2 target, the central bank will stress its resolve to keep monetary policy ultraloose to underpin a fragile economic recovery, the sources said.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIn fresh quarterly projections due to be released at the April 2728 policy meeting, the BOJ will likely lift its core consumer inflation forecast for the current fiscal year through March 2023 to above 1.5 from the present estimate of a 1.1 increase, the sources said.p

pThe board is also expected to trim this fiscal years growth forecast, the sources said, as rising raw material costs blamed on the Ukraine war hurt global trade and domestic consumption.p

pThe BOJs current forecast made in January is for the economy to expand 3.8 this fiscal year, far higher than 2.6 growth projected in a Reuters poll.p