At its upcoming meeting, the Bank of Japan is set to slash its inflation forecasts for the coming fiscal year and may push also back the timeframe for hitting the 2% inflation target yet again. While the failure to hit the target can be blamed in part on the stronger yen, domestic price pressures have weakened as well recently. We forecast a cut in the policy rate to -0.2% this week followed by further cuts in the first half of next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services