As oil prices surge, the Bank of Japan is reportedly considering significantly raising its inflation forecasts.

Glonghui, April 14th｜According to sources cited by the media, Bank of Japan officials may consider sharply raising their inflation expectations at this month's policy meeting, mainly to reflect the impact of high oil prices. The sources indicated that, since the outbreak of the US-Israel-Iran conflict, oil prices have risen by about 50%, and the Bank of Japan's board may discuss raising the key inflation forecast for this fiscal year from the current 1.9%. The sources also pointed out that, since the Middle East conflict is unlikely to be resolved in the short term, officials may also consider downgrading economic growth expectations. They said that historically, surging oil prices have often dragged down the Japanese economy by worsening trade conditions, as the country relies on importing natural resources.