Prime Minister Sanae Takaichi (高市早苗) instructed Minister of State for Economic and Fiscal Policy Minoru Kiuchi (城内実) to pay close attention to market trends and ensure a stable macroeconomic environment, it was reported. The report also referred to coordination between the Bank of Japan and the government.
At the Council on Economic and Fiscal Policy, Prime Minister Takaichi instructed Minister of State for Economic and Fiscal Policy Kiuchi to closely monitor market trends and take thorough measures to ensure a stable macroeconomic environment. The policy of coordination between the Bank of Japan and the government to achieve price stability, based on their joint statement, was also reaffirmed.
Based on the Bank of Japan's Outlook for Economic Activity and Prices, the view was expressed that the underlying inflation rate is consistent with a level of around 2%. The Bank of Japan has stated that it should assess whether inflation of around 2% has become entrenched from the perspective of achieving its price stability target on a sustainable and stable basis.
September core CPI rose 2.1% year on year, exceeding the Bank of Japan's target. The government maintained its policy of postponing an official declaration that deflation had been overcome, while emphasizing the realization of a growth-oriented economy in which sustained price increases are linked to wage growth.
Private-sector members recommended prioritizing the entrenchment of a virtuous cycle between wages and prices, rather than treating price increases themselves as the goal. They said that macroeconomic stability should be pursued through agile responses to risks including overseas economies, energy prices and AI investment trends.