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21 October 2005 15:43  Bank of Japan likely to forecast 0.4 pct rise in FY 2006 core CPI


The Bank of Japan (BoJ) is expected to issue a forecast that the core nationwide consumer price index (CPI) will grow 0.4 pct in the year to March 2007 (fiscal 2006) from the previous year in its biannual report due for release October 31, according to a survey of 20 private-sector economists polled by Kyodo News. In the BoJ's biannual economic outlook report released in April, the median of CPI changes projected by BOJ policymakers for fiscal 2006 was a rise of 0.3 pct. With regard to the question of when to end its ultra-easy monetary policy, the central bank said in the April report that the possibility "will gradually increase over the course of fiscal 2006."
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