The Bank of Japan has begun considering recognizing that the underlying inflation rate has reached 2%, and is reportedly planning to proceed cautiously with its decision on a rate hike at the October meeting.
The Bank of Japan is reportedly considering recognizing that the underlying inflation rate has reached 2%. However, some observers remain cautious about concluding that all conditions are in place for a rate hike at the October meeting.
According to information attributed to sources familiar with the matter, the economic impact must be assessed before deciding on a rate hike. The lack of any major change in the Tankan inflation outlook is also cited as a factor.
The view has also been expressed that monthly inflation indicators are tracking in line with the Bank of Japan's assumptions, and the market's movements will need to be assessed through the policy meeting.