The Bank of Japan is considering whether inflation has reached 2%. It is also expected to indicate at the Monetary Policy Meeting that it intends to keep the policy rate unchanged.
At this meeting, the Bank of Japan is considering the information needed to assess whether inflation has reached the 2% level. The aim is reportedly to confirm the criteria for operating monetary policy going forward, based on price trends and the state of the economic recovery.
At the same time, the Bank is expected to indicate its intention to maintain the policy rate at its current level, and the market is watching this point closely. The content of the Bank of Japan’s statement and explanatory materials is expected to attract attention as a factor that could determine the direction of policy operations going forward.
In subsequent reports, the focus is expected to be on the official assessment of price trends, the related reaction in financial markets and whether there will be any specific conditional changes to policy.