The Bank of Japan is likely to consider changing its inflation forecasts at its policy meeting next week to reflect the short-term impact on prices of a government travel campaign, according to people familiar with the matter.
The central bank will probably discuss cutting its price projection for the year ending in March to account for the downward price pressure of Prime Minister Yoshihide Suga’s Go To Travel campaign, the people said. The campaign offers subsidized domestic travel.
A downgrade of the projection wouldn’t trigger any additional action by the bank, the people added.