At a press conference, the BOJ governor said that underlying inflation was broadly consistent with the 2% target, while acknowledging that the target had not yet been achieved on a sustained and stable basis. The Outlook Report identified future risks and suggested a policy of prioritizing stability around the 2% level while financial conditions remain accommodative.
At a press conference on the afternoon of the 30th, BOJ Governor Kazuo Ueda (植田 和男) explained the contents of the Outlook Report released that day. Regarding the underlying inflation rate, he said it was “at a level broadly consistent with the 2% price stability target.”
At the same time, he indicated that underlying inflation had not yet become firmly established at the 2% level on a sustained and stable basis. He reiterated the view that establishing 2% inflation was important.
While the Outlook Report said that underlying inflation would remain at a similar level going forward, it also referred to upside risks to prices, including persistently high crude oil prices resulting from heightened tensions in the Middle East, rising AI-related demand and a weaker yen.
The report also indicated a policy of maintaining the rate-hike path, stating that stabilizing underlying inflation at around 2% would be important while accommodative financial conditions continue. The timing and pace of rate hikes will be considered while monitoring developments in the Middle East and other factors.