Sources: BOJ to raise growth forecasts, cut inflation outlook next week - RTRS

Reuters reporting comments from sources familiar with the BOJ thinking, citing that the Japanese central bank is likely to raise its GDP growth forecasts, but cut its inflation outlook next week.

Key Points:

"It's taking longer than expected for inflation to pick up," one of the sources said.

"Sizable cuts in the price forecasts may be inevitable," another source said, adding a delay in the projected timing for hitting the target "can't be ruled out."

Two other sources expressed a similar view, warning that the underlying weakness in inflation could hamper the BOJ's efforts to change public perceptions that deflation will persist.

"The Federal Reserve is exiting, the European Central Bank will taper its bond purchases next year, but I think the yield target in Japan will stay in place for quite some time," sources said.