The Bank of Japan will begin a two-day monetary policy meeting today. While the inflation rate is considered likely to have reached the 2% target, the policy rate is expected to remain unchanged, and the Bank's next steps will be closely watched.
The Bank of Japan will hold a two-day monetary policy meeting from today. The policy rate is expected to remain unchanged, while the likelihood is increasing that the inflation rate has reached the underlying level of around 2%. ABEMA TIMES has also reported on the matter in a video broadcast.
The Bank of Japan has aimed to stabilize underlying inflation, excluding temporary factors, at around 2%. The likelihood is expected to increase that this level has effectively been reached. Risks such as the situation in the Middle East are still considered capable of pushing up prices, and the Bank may continue its policy of raising rates for the time being to establish this level.
The Bank of Japan raised its policy rate to approximately 1.25% last month. It is reported to be likely to leave rates unchanged again at this meeting in order to assess the impact of the rate hike.
Further measures to ensure that inflation becomes established at around 2% may be discussed going forward. Factors pushing up prices remain in place, and attention is focused on future policy developments.