TOKYO – The Bank of Japan has wrapped up a policy meeting with no changes to its ultra-lax stimulus program, but slightly raised its forecast for growth in this fiscal year.
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The central bank did cut its outlook for inflation for the full fiscal year, which ends next March, to 0.8 percent from an earlier forecast of 1.1 percent.
The BOJ said Tuesday that while the economy is gaining momentum, growth is not yet pushing wages higher or boosting consumer demand enough to fuel inflation. But it said it expects inflation to gradually rise toward its 2 percent target.
This year, the central bank expects the economy to expand at a 1.9 percent pace. But it forecast that growth will slow to 1.4 percent in the coming year.
