Four people said the Bank of Japan may lift its inflation outlook for the next
fiscal year in projections due this month, citing higher oil prices that are
producing more persistent price pressure than expected. After last month’s rate
increase, the BOJ is expected to keep policy rates unchanged at its two-day
meeting ending Oct. 30 unless a sharp yen depreciation pushes up import costs
and overall inflation. Sources added the BOJ’s post-meeting quarterly report
could highlight rising inflation risks, leaving scope for another rate hike as
soon as December. One source said consumer price gains may persist longer than
expected despite little change in underlying inflation; two others concurred.
