The Bank of Japan (BOJ) is considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024, Nikkei reported on Saturday, per Reuters.

Citing people familiar with discussions at the central bank, Nikkei said the proposed changes would show the core consumer price index rising around 3% in fiscal 2022, between 1.6% and 2% in fiscal 2023, and nearly 2% in fiscal 2024.

An additional burden for USD/JPY

USD/JPY is likely to witness additional downside due to the news as it increases the odds of the Bank of Japan’s (BOJ) monetary policy tightening. That said, the Yen pair dropped heavily in the last two days, around 131.30 by the press time.