At the BOJ's policy meeting, underlying inflation excluding temporary factors reached 2%. The target was achieved 13 years after its introduction, marking a milestone viewed as bringing the accommodative phase to an end.
In its explanation after the meeting, the BOJ said that underlying inflation excluding temporary factors had reached a level broadly consistent with the 2% target. This means the target was achieved 13 years after its introduction in 2013. The BOJ's monetary policy, which had maintained an accommodative environment while avoiding deflation, has reached an important milestone.
At a press conference after the meeting, BOJ Governor Kazuo Ueda said that all 9 Policy Board members had reached the same conclusion. This emphasized a shared recognition that the target had been reached and again suggested that the BOJ intended to continue its accommodative policy.
Following this milestone, the BOJ is described as positioning its policy operations at a turning point, while maintaining an accommodative environment and looking toward stable underlying inflation and a sustained economic recovery. Market participants' responses are contributing to interest in future interest-rate trends and a review of asset purchases.