BOJ set to keep ultra-low rates, may signal inflation overshoot

A Japanese flag flutters at the Bank of Japan headquarters in Tokyo. - AP

TOKYO: The Bank of Japan (BOJ) is expected to maintain ultra-loose monetary policy next week and its forecast for a moderate economic recovery, as robust corporate and household spending cushion the blow from slowing overseas demand, sources said.

The central bank also may signal that inflation is overshooting its forecasts, which would heighten the chance of an upgrade in its price projections at a quarterly review of its estimates due in July, they said.