By Leika Kihara
TOKYO, July 24 (Reuters) - The Bank of ******* an will likely maintain its warning over the risk of inflation overshooting its 2% target next week, but signal that those risks have not increased significantly from three months ago, three sources familiar with its thinking said.
In a quarterly outlook report due at next week's policy meeting, the BOJ is expected to highlight lingering inflation risks stemming from the Middle East conflict, robust global AI demand and rising import costs from a weak yen.
At the same time, the central bank believes the likelihood of a worst-case scenario, in which severe supply disruptions trigger a sharp surge in prices and force rapid interest-rate hikes, has diminished from three months ago, said three sources familiar with its thinking.
"There is a risk of underlying consumer inflation deviating upward from our 2% target," the BOJ said in June when it raised interest rates, language sources said is likely to feature again in next week's quarterly outlook report.
#risk
TOKYO, July 24 (Reuters) - The Bank of ******* an will likely maintain its warning over the risk of inflation overshooting its 2% target next week, but signal that those risks have not increased significantly from three months ago, three sources familiar with its thinking said.
In a quarterly outlook report due at next week's policy meeting, the BOJ is expected to highlight lingering inflation risks stemming from the Middle East conflict, robust global AI demand and rising import costs from a weak yen.
At the same time, the central bank believes the likelihood of a worst-case scenario, in which severe supply disruptions trigger a sharp surge in prices and force rapid interest-rate hikes, has diminished from three months ago, said three sources familiar with its thinking.
"There is a risk of underlying consumer inflation deviating upward from our 2% target," the BOJ said in June when it raised interest rates, language sources said is likely to feature again in next week's quarterly outlook report.
#risk
10 days ago
