According to ChainCatcher, three sources familiar with the Bank of Japan's thinking said that the bank will consider raising its inflation forecast for the current fiscal year this month, reflecting the continued rise in rice and broader food prices.
However, sources said that the Bank of Japan is expected to largely maintain its inflation forecast for fiscal years 2026 and 2027, which means the bank will pause interest rate hikes and wait for clearer information on how U.S. tariffs will affect the economy.
