BOJ Governor Ueda Kazuo (植田 和嗣) considered the underlying inflation rate reaching 2% a key milestone. However, he said the target had not yet been achieved, that the policy rate would be maintained at approximately 1.25%, and that the BOJ would continue considering rate hikes at future meetings.
BOJ Governor Ueda Kazuo (植田 和嗣) considered the underlying inflation rate reaching 2% “a key milestone.” This is said to be the first time it has reached that level since the BOJ introduced the target in 2013, but he indicated that this did not amount to a declaration that the target had been achieved.
On the view that the target had not yet been achieved, he said the BOJ would focus on establishing inflation around 2% while risks of higher prices, including those stemming from the situation in the Middle East, persisted.
The policy rate was maintained at approximately 1.25%, and financial conditions are considered accommodative. The BOJ indicated that it would continue raising rates and consider the issue at every meeting, including the next one. The market expects a rate hike as early as December.