The Bank of Japan said on the 21st that it plans to determine at its October Monetary Policy Meeting whether the inflation rate has reached 2%. If it has, the decision would symbolically mark a shift away from the prolonged fight against deflation.
The Bank of Japan indicated that it expects to determine whether the inflation rate has reached its 2% target at its Monetary Policy Meetings on the 29th and 30th. The determination is expected to be announced through the views presented in its Outlook for Economic Activity and Prices report.
If the target has been reached, the decision is expected to symbolically mark a shift away from the fight against deflation. The policy rate is likely to remain at its current level of around 1.25%, after the Bank decided to raise it at its previous meeting in September.
The BOJ set a 2% inflation target in January 2013, but has repeatedly postponed the timing for achieving it. If achieved, it will have taken approximately 14 years.
Following the meeting, the BOJ is expected to present its views on the outlook for prices in its Outlook for Economic Activity and Prices report.