Japanese consumer prices remain sluggish mainly due to entrenched consumer frugality and companies' cautiousness about raising product prices.

The BOJ will update its economic and price projections in the quarterly Outlook for Economic Activity and Prices report that will be released after the BOJ meeting.

At the meeting, the central bank will also discuss whether to delay its predicted date for attaining its 2 pct inflation target further from the currently expected period of around fiscal 2018.

The BOJ has pushed back the target date five times so far.

In the previous report, released in April, the BOJ lowered the projection for year-on-year growth in the core consumer price index for fiscal 2017, which began in April, to 1.4 percent from 1.5 percent, mainly citing cuts in mobile phone charges.

Prices have been growing only slightly since then. The May core CPI, excluding often volatile fresh food prices, rose just 0.4 percent from a year before.

The BOJ is likely to hold steady its monetary policy targets, including one for guiding long-term interest rates to around zero percent. Policymakers are expected to conclude that the favorable situation for price rises continues as the economy is faring well thanks to brisk production and exports.

The central bank may raise its projections on real gross domestic product growth.

The BOJ will also consider revising up its basic assessment of the Japanese economy further. In the April report, it painted a brighter picture, stating that the economy "has been turning toward a moderate expansion." (Jiji Press)