The Bank of Japan is likely to cut its price growth forecasts at a policy meeting later this month as long-term inflation expectations stall, sources said, highlighting the central bank's difficulty in hitting its elusive price target.
Three sources said the BOJ is likely to cut its projection for core consumer price growth this fiscal year to around 1.0 percent from the 1.3 percent projected in April, and for next year to around 1.5 percent from 1.8 percent.
The sources spoke on condition of anonymity because the BOJ Policy Board's discussions are confidential.