The Bank of Japan is reportedly considering indicating at its 29-30 September Monetary Policy Meeting that it judges underlying inflation to have reached around 2%. Ahead of the release of the Outlook for Economic Activity and Prices, the timing for reaching the target is expected to be a key focus.
According to a Jiji Press report, the Bank of Japan may consider and indicate at its Monetary Policy Meeting on 29-30 September that it judges underlying inflation to have reached around 2%.
At this meeting, the Bank will present its Outlook for Economic Activity and Prices, while the expected timing for achieving 2% underlying inflation has been pushed back from the second half of fiscal 2026 to fiscal 2027.
The article points out that the Bank of Japan's judgment may be against the backdrop of reduced political pressure, while also stating that an indication that the target has been reached would suggest that the normalization of monetary policy, including rate hikes, is imminent.
There is a view that opposition to Bank of Japan rate hikes has receded under the Takaichi administration, and commentary also suggests that this could lead to a recovery in the Bank's independence and greater latitude in policy decisions.