2026-01-23 03:09:03

The Bank of Japan just signaled a shift in its economic outlook. Core inflation excluding energy for fiscal 2026 is now expected to hit 2.2%, up from the previous 2.0% forecast. Year after, they're still calling for 2.1% versus an earlier 2.0% estimate.

What's more interesting is the growth picture. BOJ bumped FY2026 GDP forecast to 1.0% from 0.7% - that's a notable revision upward. However, they trimmed FY2027 expectations to 0.8% from the prior 1.0% call.

The takeaway? Japan's central bank sees near-term momentum building, but expects the economy to cool post-2026. With inflation creeping higher and growth stronger than initially thought in the near term, this could reshape expectations around yen movements and regional monetary policy. For traders watching cross-asset correlations, this kind of macro recalibration tends to ripple across global markets.

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RooftopReserver

· 11h ago

The Bank of Japan has started adjusting its expectations again, raising inflation forecasts for 2026, revising upward growth... and so on, then lowering them again in 2027? This move is a bit like drawing waves.

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OnchainSniper

· 11h ago

The Bank of Japan is adjusting its expectations again, with inflation rising and growth improving... We've seen this routine too many times before. Is the hawkish shift in Japan coming? The yen is about to take off in this wave.

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RetroHodler91

· 11h ago

The Bank of Japan is about to stir things up again, with inflation raised for 2026 and growth also revised upward... but it will be cut back the year after next. I know this routine too well. --- The yen is about to fluctuate again. Short-term optimism but long-term concerns. This is the BOJ's style. --- Wait, growth is revised upward but then cut again in 2027? Feels like paving the way for rate hikes. --- Easing is almost over. What are central banks around the world hinting at? Feeling a bit uneasy. --- With this wave of data adjustments, Asian traders will be riding a roller coaster. --- Short-term positive signals are exhausted and then cooling off? Japan's economy is still following the same routine. Not interesting.

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ServantOfSatoshi

· 11h ago

The Bank of Japan is once again adjusting expectations, this time revising inflation upward and also revising growth upward... but the year after next, they plan to cut again. This combination of moves is really hard to understand.

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TeaTimeTrader

· 11h ago

The Bank of Japan's recent adjustments are quite interesting, with a pattern of rising first and then falling... The 2026 GDP was pushed from 0.7% up to 1.0%, but the following year it was cut back to 0.8%. It feels like they're giving a warning signal for a recession in the subsequent years.

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ZenZKPlayer