Bank of Japan Set to Raise Inflation Outlook, Consider Changes to Yield Curve Control
-
BOJ expected to revise up inflation forecasts at Oct 30-31 meeting and discuss tweaks to yield curve control policy.
-
One idea is allowing 10-year JGB yield to rise above 1% cap by revising bond buying guidance.
-
Tweaks would reduce need to ramp up bond buying but cement expectations of ending negative rates.
-
In new forecasts, BOJ likely to show inflation hitting or exceeding 2% target this year and next.
-
But bank seen projecting slower inflation in 2025 on weaker growth and wage uncertainty.