The Bank of Japan released an ``Outlook Report'' on the occasion of the Monetary Policy Meeting, which provides a three-year outlook for prices.
According to this, the median outlook for the Consumer Price Index, excluding fresh food, is a 2.8% increase for the current fiscal year, fiscal 2023, compared to the previous fiscal year, based on the median of policy committee members, leaving the previous outlook as of October last year unchanged. Ta.
For fiscal 2024, we have reduced the rate to +2.4% from the previous +2.8%.
In addition, the rate for FY2025 has been increased to 1.8% from the previous rate of 1.7%.
For fiscal 2024, the price has been lowered because import prices, including crude oil, have stabilized.
However, if this forecast comes true, the rate of increase in the consumer price index will exceed the 2% target set by the Bank of Japan for three consecutive years starting in fiscal 2022.
The Bank of Japan stated, ``While the future remains highly uncertain, the probability that this outlook will materialize continues to increase little by little.''
The Bank of Japan is willing to change its large-scale monetary easing measures, including the negative interest rate policy, if it is expected to achieve its 2% price stability target in conjunction with wage increases, and the focus will be on determining whether this is the case going forward.