Four sources told Reuters the Bank of Japan may raise its core inflation forecast for next fiscal year in forecasts due this month, as higher oil prices add longer-than-expected price pressure. The BOJ is expected to keep rates steady at its October 30 meeting unless the yen slides again, but its quarterly report may stress inflation risks and leave room for another hike as soon as December. Sources see only a minor upward revision to fiscal 2027 core inflation from the 2.4% projected in July, with growth forecasts of 0.6% for fiscal 2026 and 0.8% for 2027 roughly maintained. The BOJ raised its key rate to 1.25% last month, a 31-year high, and Governor Kazuo Ueda has warned underlying inflation may overshoot its 2% target. Many analysts polled by Reuters expect rates to reach 1.75% by June next year.
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Related tickers and likely impact
USD/JPY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 158.532 |
| Change that session | +0.34% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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