BOJ to raise inflation forecast above 2% but maintain dovish bias – Reuters

The Bank of Japan (BOJ) is expected to raise the FY2022 inflation forecast to slightly above 2% from the current 1.9% in the quarterly outlook report due July 21, Reuters reports, citing sources.

Also read: BOJ to raise inflation view for fiscal 2022 to above 2% - Jiji

Additional takeaways

BOJ expected to cut fiscal 2022 economic growth forecast from current +2.9% in quarterly report.

BOJ to warn of risks from global slowdown at quarterly report.

Report may tone up view on inflation expectations.

BOJ likely to maintain ultra-low interest rates, dovish policy bias.

Market reaction

USD/JPY is off the daily highs of 136.23, currently trading at 135.95, almost unchanged on the day.