While the BOJ stated that underlying inflation had reached 2%, Minister of State for Economic and Fiscal Policy Jōnai (城内) said the government would maintain its policy of carefully considering when to declare an end to deflation.
The BOJ expressed the view that underlying inflation had reached the 2% target. This prompted discussion of the end of the deflationary conditions that had persisted for many years.
Minister of State for Economic and Fiscal Policy Jōnai (城内) reiterated that a declaration of an end to deflation would require careful consideration, saying that future decisions would take the overall economic situation into account.
As a basis for future decisions, the minister cited the output gap, which is closely watched in assessing the outlook for prices, and explained that it would be necessary to carefully determine whether the gap would remain positive.
The BOJ's assessment and the government's view once again demonstrated a cautious stance toward the policy of declaring an end to deflation.