The BOJ decided to maintain its current policy stance at Governor Ueda’s press conference, while underlying inflation was effectively recognized as having reached 2%. At the same time, the BOJ indicated that it would adjust monetary policy as appropriate going forward.
The BOJ’s policy meeting decided to maintain the current stance, rather than reaching a unanimous decision, and Takata, a dissenting committee member, proposed raising the policy rate to 1.5%. Although the market had priced in a decision to hold rates, the actual decision was made by an 8-1 vote.
At the press conference, it was reported that the BOJ had changed its assessment of underlying inflation to a level broadly consistent with its 2% price stability target. This led to an interpretation that underlying inflation had effectively reached 2%, but Governor Ueda stressed that this was not something for which to issue a declaration of achievement.
Regarding future rate hikes, Governor Ueda said the BOJ would adjust monetary policy as appropriate, rather than simply waiting for 2% inflation to become firmly established. He did not state whether the price target would be declared achieved, and future changes to monetary policy are expected to be determined according to conditions at the time.