The Bank of Japan revised up its inflation forecasts and offered a less gloomy outlook on the economy than three months ago, keeping alive the possibility of a resumption in interest rate hikes this year.

Bank of Japan watchers brought forward their forecast for when they expect the next interest rate hike, after clarity over trade increased with US President Donald Trump announcing deals including one with Japan.

In a quarterly outlook report, the board revised up its core consumer inflation forecast for the current fiscal year to 2.7% from 2.2% projected three months ago. BOJ Governor Kazuo Ueda will hold a news conference to explain the decision at 3:30 p.m. (0630 GMT).