Reuters quoting sources familiar to the matter, the Bank of Japan (BOJ) is expected to slash its inflation outlook for the next two fiscal years at a quarterly review meeting next month. The sources add that the downward revision to the price outlook is mainly on the back of falling import prices on yen’s appreciation and dismal pace of wage growth. One of the sources noted, "Currency moves and wage negotiations have a big effect on prices," acknowledging that significant cuts to the BOJ's current price forecasts may be inevitable. At the next review on April 27-28, the central bank is thus likely to cut its inflation forecast to around 0.5% for FY 2016 and to around 1.5% for FY 2017, the sources said. Such a move is likely to push back once again BOJ’s timeline for hitting its 2% price target. For more information, read our latest forex news.