The Bank of Japan said Thursday that it kept its monetary policy unchanged after its two-day meeting, but it cut inflation forecasts for fiscal years 2017/2018 and 2018/2019.
The central bank now expects inflation to be at 1.1 percent for the current fiscal year, down from its previous forecast of 1.4 percent. For the next financial year, it expects inflation to hit 1.8 percent instead of 1.9 percent.
“The timing of the year-on-year rate of change in the CPI reaching around 2 percent will likely be around fiscal 2019,” the central bank said in its latest statement. It had previously said it would hit the target before the end-March 2019.