The Bank of Japan (BoJ) is highly likely to revise the year-on-year Core Consumer Price Index (CPI) forecasts for the fiscal year of 2023 and 2024 higher, Bloomberg reported on Tuesday.
The BoJ’s new Core CPI forecast for the fiscal year 2023 is likely to approach 3%, up from 2.5% as of July, and be set at 2% or more in sight for the fiscal year 2024, Bloomberg added.
Market reaction
USD/JPY dropped below 149.00 with the immediate reaction to this report but quickly recovered to 149.50 area afterward.