The Bank of Japan is expected to finalize its decision to hold off on a rate hike at its October Monetary Policy Meeting. It is highly likely to assess that the underlying inflation rate has reached 2%, marking a shift toward a phase of stabilizing it at that level, according to reports.
The Bank of Japan is expected to hold its October Monetary Policy Meeting on the 29th and 30th and decide to hold off on a rate hike. The underlying inflation rate is highly likely to be judged to have reached the 2% inflation target.
The BOJ introduced its 2% inflation target in January 2013. It has pursued the target through large-scale monetary easing, but with underlying inflation reaching 2%, it is entering a phase of shifting policy toward stabilizing inflation at that level.
Following this milestone more than 14 years on, the BOJ's monetary policy is said to be moving into a new phase. Attention is focusing on future developments and specific clues to how policy will be conducted.