BoJ: Focus on its updated economic projections - BBH

In view of the analysts at BBH, the Bank of Japan will likely maintain its current policy stance in its forthcoming meet, and the focus is on its updated economic projections.  

Key Quotes

“It will issue its report on Economic Activity and Prices.  Better growth prospects, especially in Asia, provides stimulus to the Japanese economy through trade, but what about inflation?  In January, the BOJ projected that core inflation, which excludes fresh food, will rise 1.5% this fiscal year that began at the start of the month.  The core rate had risen by 0.2% in the 12-months through February.”

“It seems to be more an exercise of hope than compelling analysis.  The expected inflation on break evens (6-10-year) is 0.42% and 0.48%.  The FY18 inflation forecast stands at 1.7%, and the central bank anticipates FY19 to be near the 2.0%. The take away from what seems like unrealistic forecasts are the signal that the BOJ remains committed to its unorthodox policies.”