Bloomberg is out with a piece saying that the BoJ is considering raising their inflation forecasts after the solid results in the recent Japanese wage negotiations.
- Core CPI is seen revised higher with price growth forecasts to be close to 2%
- The report also noted that officials need to be aware of the potential for downside risks to inflation when considering fiscal projections for 2026
There was some marginal downside in USDJPY after the news but some of the move has faded already.
I don't think this changes much for the outlook for the BoJ, not after the recent rhetoric and commentary.
But the BoJ loves playing with the markets through their mixed communications so might just be that at work.
