BOJ's Shifting Tone: A Cautionary Note on Japan's Economic Future The Bank of Japan's upcoming policy meeting has been making headlines, with the central bank expected to maintain its warning over inflation risks.
However, this time around, the tone is slightly more nuanced.
According to three sources familiar with the BOJ's thinking, while the risks of a worst case scenario – a sharp surge in prices triggered by severe supply disruptions – have diminished from three months ago, the BOJ remains vigilant about lingering inflationary forces.