The Bank of Japan sharply lifted its inflation outlook for fiscal 2022 from an earlier forecast of a 1.1 percent rise to 1.9 percent amid higher commodity prices. Still, the central bank maintained its ultra-loose monetary policy, expecting to reach 2 percent.
The resolution from its two-day meeting was to set short-term interest rates at -0.1 percent, while guiding 10-year Japanese government bond yields to around zero percent to support the economy that is expected to expand 2.9 percent this year, a revision from 3.8 percent growth in an earlier forecast by the central bank in January.
Japan reported a rise in March core inflation at 0.8 percent, which was up from 0.6 percent in February. The core consumer price index, excluding volatile fresh food items, is expected to rise 1.9 percent this year, a much higher rate than earlier anticipation of 1.1 percent.
