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The Bank of Japan is considering forecasting Japan’s core inflation will be around 2 percent in fiscal 2026 in its new outlook report, aided by a positive cycle of pay and price hikes, sources familiar with its thinking said Friday. The Japanese central bank is also studying revising upward its inflation outlook for fiscal 2024, which began this month, from the current 2.4 percent. The bank is expected to raise its forecast for fiscal 2025 from 1.8 percent to around 2.0 percent, the sources said. At its two-day meeting from next Thursday, the BOJ is widely expected to keep short-term interest …

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