At its monetary policy meeting on 29 and 30 October, the Bank of Japan kept its policy rate unchanged and indicated that the 2% price stability target had been achieved. The focus was on how interest rate movements affect economic and price stability.
The Bank of Japan held a monetary policy meeting on 29 and 30 October and announced that it would keep the policy rate at around 1.25%. Governor Ueda Kazuo (植田和男) attended the press conference and explained the decision.
Regarding the 2% price stability target, the Bank of Japan stated that it had been "virtually reached." The target had been established to prevent significant price fluctuations and ensure stable economic activity.
Moving interest rates is said to adjust the "momentum for spending money." Lower rates act as an accelerator for the economy, while higher rates apply the brakes.
The Bank of Japan indicated that its aim is not to make prices themselves cheaper, but to manage the momentum of stable price increases going forward.