The Bank of Japan released its view that inflation had reached 2%, describing it as the first achievement since the target was introduced in 2013. Monetary policy is expected to shift its focus toward price stability, while the Bank also indicated that it would keep the policy rate at around the current level of 1.25% at its monetary policy meeting.
The Bank of Japan said it judged that inflation had reached the 2% target. This is regarded as the first achievement since the target was introduced in 2013. Going forward, the focus of monetary policy is expected to shift from raising prices to maintaining stability.
The Bank was also reported to have decided on the same day at its monetary policy meeting to keep the policy rate at around the current level of 1.25%. It further decided to accelerate the annual selling pace of exchange-traded funds (ETFs) to approximately ¥860 billion.
Following achievement of the 2% inflation target aimed at ending deflation, the Bank of Japan is expected to shift its policy operations toward stability.