At its monetary policy meeting, the Bank of Japan decided to defer a rate hike and for the first time said it judged that underlying inflation had reached the 2% target. The policy rate is expected to remain at around 1.25%.
The Bank of Japan decided at its monetary policy meeting to defer a rate hike and indicated that it would keep the current policy rate at around 1.25%. The decision is believed to reflect an intention to assess the impact of last month's rate hike.
The Bank said it judged that underlying inflation had reached the 2% target and, for the first time, released its view that this was a level consistent with the price stability target.
Commissioner Takata Hajime (高田 創) proposed raising the rate to around 1.5%, but the proposal was rejected at the meeting.
The quarterly Outlook Report for Economic Activity and Prices was also released, providing new information on the outlook for prices and the economy.