The Bank of Japan is expected to raise its inflation outlook for the next fiscal year in its quarterly forecast due this month, as rising oil prices exert more persistent price pressure on the economy than previously anticipated. According to four sources familiar with the matter, consumer price gains may persist longer than expected despite underlying inflation remaining largely unchanged. Despite the upward revision to inflation projections, the central bank is likely to keep interest rates steady at its two-day policy meeting ending October 30, following a rate hike just last month. A further move would only be considered if the yen weakens sharply again, driving up import costs and overall inflation. However, the BOJ may continue to highlight growing inflation risks in its post-meeting report, leaving room for another potential rate hike as early as December.