TOKYO :The Bank of Japan may next week slightly revise up this year’s growth forecast and maintain its view that the economy is on course for a moderate recovery, despite headwinds from U.S. tariffs, said three sources familiar with its thinking.
At the next policy meeting on October 29-30, the BOJ will conduct a quarterly review of its growth and price forecasts.
Recent data, including the BOJ’s “tankan” business survey released earlier this month, have led to a growing view within the BOJ that the economy is weathering the hit from higher U.S. levies, the sources said.
Many in the BOJ see domestic economic conditions moving in line with projections made in July, with companies unwavering in their stance to keep increasing spending on expenditure and wages, the sources said.
As such, the BOJ may slightly revise up its economic growth forecast for the current fiscal year ending in March 2026, said the sources, who spoke on condition of anonymity as they were not authorised to speak publicly.
In current forecasts made in July, the BOJ expects the economy to grow 0.6 per cent in fiscal 2025 and 0.7 per cent the following year.
