Bank of Japan officials are likely to consider raising their inflation forecast sharply at their policy meeting this month, mainly to reflect elevated oil prices, according to people familiar with the matter.
The BOJ¡¯s board will likely discuss lifting its key price projection for this fiscal year from the current 1.9% after oil prices surged roughly 50% since the outbreak of the U.S.-51³Ô¹ÏÍø, the people said.
With uncertainty over the Middle East conflict unlikely to clear in the near term, officials will probably also consider lowering the economic growth forecast, the people said. Oil price spikes have tended in the past to weigh on the economy by worsening the terms of trade, as the nation relies on imports of natural resources, they said.
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