The Bank of Japan predicted inflation could slow this year, according to the central bank’s summary of opinions from its March meeting.
“The year-on-year rate of increase in the consumer price index (CPI) is likely to decelerate toward the middle of fiscal 2023 due to the effects of pushing down energy prices from the government’s economic measures,” the report said.
While the BOJ noted Japan’s economy has been “resilient on the whole,” it also expressed the need to carry on with its monetary easing policy.
“Until achievement of the price stability target of 2% sufficiently comes into sight, it is necessary for the Bank to continue with the current monetary easing, including yield curve control,” the report stated.
Japan’s CPI reading for February slowed from a 42-year high to 3.3%.
This article was originally published by CNBC.
