Bank of Japan may raise fiscal 2027 core inflation forecast; October rate hold expected

The Bank of Japan may slightly increase its core inflation forecast for fiscal 2027 when it issues projections at its Oct. 29-30 meeting, Reuters reported, citing four sources familiar with its thinking. They expect the bank to hold its 1.25% policy rate unless a renewed yen slide pushes up import costs and broader inflation. The possible revision reflects higher oil prices, not a major shift in underlying inflation, the sources said.