BoJ may offer a less gloomy view of US tariff hit in quarterly report - Reuters

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BoJ to warn of uncertainty over the impact of US tariffs but may offer a less gloomy view.BoJ to keep interest rates unchanged at the July 30-31 meeting.BoJ likely to maintain view that inflation will durably hit its 2% target in the latter half of its three-year projection period.BoJ will consider revising up its inflation forecast for the current fiscal year.This would mark a small step in the more hawkish camp. The BoJ has been placing a great deal on the US-Japan trade negotiations and that's likely what has been holding them back from delivering another rate hike.The Japanese upper-house election this weekend could be the catalyst for some JPY appreciation in case the ruling bloc maintains majority. The market might look forward to a trade deal and eventually an earlier than expected rate hike given the high inflation and resilient economic data. This article was written by Giuseppe Dellamotta at www.forexlive.com.