BOJ revises up fiscal 2014 GDP forecast, warns of overseas risks

TOKYO (Reuters) - The Bank of Japan said on Thursday that Japan is making steady progress towards achieving 2 percent inflation but warned of headwinds from overseas, such as a slowdown in emerging economies.

"Overseas economies are performing somewhat weaker than projected in our April semi-annual report but we expect overseas growth to gradually pick up, mainly in advanced economies, as global financial markets are relatively stable," the BOJ said in its outlook report for October.

(Reporting by Leika Kihara; Editing by Edmund Klamann)