BoJ trims its GDP forecast

THE Bank of Japan revised up its inflation forecast yesterday, a move that reflects the impact of recent rises in commodity prices.

Consumer price index (CPI) inflation will reach 0.3 per cent in the next financial year, it said.

“However, the Bank could not be expected to say that inflation will remain negative as this would admit failure on a key policy objective,” said Julian Jessop of Capital Economics.

Interest rates were kept at virtually zero, while GDP forecasts for the next financial year were revised slightly down to 1.6 per cent from 1.8 per cent.