BOJ not likely to blink even if oil triggers cuts to CPI forecasts

Tokyo

RENEWED declines in oil prices may force the Bank of Japan to again slash its inflation forecasts in January, but such downgrades would not lead to an immediate expansion of monetary stimulus, people familiar with the central bank's thinking say.

The BOJ cut its price forecasts in October and pushed back the timeframe in which it expects inflation to hit its 2 per cent-target by six months, blaming the delay largely on slumping energy costs.

The forecasts were based on the assumption that crude oil prices, which were around US$50 per barrel back then, w…