The Bank of Japan is likely to declare victory in its nearly 14-year battle to achieve its 2% inflation target at its policy meeting on Friday, while warning of the risk of prices overshooting the goal and signalling scope for another interest rate hike as soon as December, Reuters reported.
The anticipated shift in the central bank's assessment would mark a significant milestone in Japan's departure from decades of deflation and ultra-loose monetary policy. With wage gains becoming more firmly established and inflation expectations hovering around 2%, the BOJ is expected to increasingly focus on keeping inflation near its target through gradual monetary tightening.
