The BOJ announced that inflation had reached 2% and indicated a policy of leaving the policy rate at its current level of 1.25%. It also decided on a new policy of significantly accelerating the pace of ETF sales, with the expected time to complete the sales substantially shortened.
Following the results of the Monetary Policy Meeting held over 2 days through midday on the 30th, the BOJ stated that the 2% inflation target had been “reached” for the first time since its introduction. It explained that a gradual upward mechanism in which wages and prices reinforce each other was operating. It also confirmed its policy of leaving the policy rate unchanged at approximately 1.25%. The proposal by Policy Board member Hajime Takata (高田 創) for an additional rate hike remained opposed, while the policy of continuing to raise rates was maintained.
The BOJ also decided to increase annual ETF sales from approximately ¥330 billion to approximately ¥860 billion as part of its large-scale monetary easing. The outlook that sales would take approximately 112 years to complete was revised to approximately 43 years.