The BOJ judged for the first time that underlying inflation had reached around 2% and decided at its Monetary Policy Meeting, by a majority of 8 votes in favour to 1 against, to leave the policy rate at around 1.25%.
The BOJ judged that day that underlying inflation had reached around 2% for the first time since the target was set in 2013. The policy rate was left at around 1.25%, decided by a majority of 8 votes in favour to 1 against.
In its Outlook Report, the BOJ upgraded its assessment, saying that underlying inflation excluding temporary factors was at a level “broadly consistent” with the 2% price stability target. This revised its previous view that inflation was “approaching 2%” to position it as being at a level consistent with the target.
The announcement reaffirmed the BOJ's monetary policy management, centred on its long-term inflation outlook and maintaining current interest rates, and attention is focused on the next developments in light of external economic conditions and supply and demand factors.