The BOJ's Monetary Policy Meeting concluded that the inflation rate had reached 2%, while an additional rate hike was deferred. Governor Ueda explained the factors behind inflation reaching 2% and the path ahead at a press conference.
At its Monetary Policy Meeting on the 30th, the BOJ published its view that the inflation rate had reached the 2% target. As a result, no additional rate hike was implemented and the current monetary policy was maintained.
At a press conference after the meeting, Governor Kazuo Ueda said it was necessary to assess developments in economic and price-related risks, including the situation in the Middle East, AI-related demand and currency fluctuations, as well as trends in financial conditions, before reaching a firmer view on the factors behind inflation reaching 2%.
Regarding upside risks to prices, he said they remained too significant to ignore, even compared with the previous meeting in September, and emphasized the need to carefully assess developments ahead. Although conditions remain fluid, including the impact of external factors, he did not commit to implementing monetary tightening immediately.
Points to watch going forward, including market and private-sector impacts, include developments in financial conditions, the sustainability of inflation and changes in the supply-demand balance. The timing and scale of any additional rate hike are seen as depending on future data and conditions.