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

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.