But the central bank revised up its price forecasts through 2024 and warned that risks were skewed to the upside, nodding to recent signs that inflationary pressure was broadening. "Accelerating underlying inflation is expected to heighten medium- and long-term inflation expectations ... and lead to sustained price rises accompanied by wage gains," it said. As widely expected, the BOJ left unchanged its -0.1% target for short-term interest rates and a pledge to guide the 10-year bond yield around 0%. The central bank also maintained its dovish guidance projecting that short- and long-term rates will remain at "present or lower levels." In a sign of its concern over global recession fears, however, the BOJ cut its economic growth forecasts for fiscal 2022 and 2023.

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