Following the BOJ’s recognition that the 2% inflation target had effectively been achieved, Chief Cabinet Secretary Kihara said he expected the BOJ to continue conducting appropriate monetary policy based on the Accord.
Following the BOJ’s indication that the 2% price stability target had effectively been achieved, the government confirmed its policy of pursuing sustained price stability in line with the joint statement, or Accord, issued by the government and the BOJ. Chief Cabinet Secretary Kihara said that even if conditions had changed since the Accord was formulated, the BOJ should pursue sustained price stability and conduct monetary policy appropriately.
Chief Cabinet Secretary Kihara indicated that it was not yet time to review the Accord even if the inflation rate had reached 2%, and again suggested that the government would seek to achieve this on a sustained and stable basis. The government emphasized the continuity of policy management as its current policy stance.
Regarding whether the government would consider declaring that deflation had been overcome, he said it was necessary to sustainably achieve economic conditions in which it could be judged that the economy was unlikely to return to a situation of sustained price declines, and indicated that the matter would be assessed cautiously.