The Bank of Japan (BOJ) has upgraded its inflation forecasts on Tuesday for the fiscal year beginning in April amid rising energy and raw material costs while the yen is weakening. Still, the Japanese central bank maintained its short-term interest rates at -0.1%, pledging to guide 10-year government bond yields around zero.
BOJ expected the core consumer price index, excluding volatile fresh food items, to rise 1.1% in FY2022, which is an increase from a 0.9% rise from the previous projection.
Nevertheless, the central bank said that the risk to price outlook is balanced.
