BoJ Summary of Opinions from January meeting states that consumer inflation is likely to gradually accelerate as more firms pass on costs to households and output gap improves

Says:

• Hard to achieve BoJ's price target by end of fiscal 2023.
• Risks to price outlook are roughly balanced with chance of upside risk if consumption remains solid despite price increases.
• Consumer inflation may temporarily approach 2% from April onwards although key is whether economy has momentum for such a move to be sustainable.
• A pick-up in Japan's economy has become evident and the economy is likely to recover as downward pressure stemming from COVID-19 on services consumption and the effects of supply-side constraints wane.
• Along with the spread of the Omicron variant, there have been heightening uncertainties regarding the outlook for Japan's economy.
• Bank should continue to do its utmost to support financing, mainly of firms, and maintain stability in financial markets for the time being. Therefore, it is appropriate for the Bank to maintain the current monetary easing.
• BoJ must take additional easing steps as needed and it is appropriate to maintain current forward guidance on interest rates and monetary base commitment.

Via BoJ