As the Bank of Japan holds a monetary policy meeting and is expected to leave the policy rate unchanged, it is increasingly likely to judge that the 2% inflation target has been reached. Risks including the situation in the Middle East will remain, but the Bank is expected to continue raising rates for the time being rather than hold off, in order to anchor inflation at approximately 2%.
The Bank of Japan will hold a monetary policy meeting over 2 days from the 29th. The policy rate is expected to remain unchanged, with the Bank expected to judge that underlying inflation has reached 2%.
The Bank of Japan recently raised the policy rate to approximately 1.25% and is expected to maintain its policy of leaving rates unchanged this time as well, in order to assess the impact of the rate hike.
Although risks that could push prices higher, including the situation in the Middle East, will remain, the option of raising rates and responding for the time being so that inflation becomes anchored at approximately 2% is considered the leading one.