At a press conference, BOJ Governor Ueda Kazuo (植田和男) said he had judged that the underlying rate of price increases had reached 2%, but pointed out that there was still a way to go before it became established over the long term. The BOJ will adjust policy as appropriate to establish the level on a lasting basis and consider whether to raise rates, including at its December meeting.
BOJ Governor Ueda Kazuo (植田和男) said he had judged that the underlying rate of price increases, excluding temporary factors, had reached 2%.
However, he indicated that the 2% price stability target had not yet been achieved on a sustainable and stable basis, and said that the Bank would change policy at an appropriate time while remaining mindful of upside risks to prices. The BOJ plans to consider whether to raise rates, including at its next meeting.
The Bank of Japan introduced its price stability target in 2013 and promoted large-scale monetary easing under former Governor Kuroda. It is now revising that policy. Governor Ueda suggested that the large-scale easing should be assessed and that the mechanism through which wages and prices again rise moderately should be restored.
He cited turmoil in the Middle East and yen depreciation as factors posing upside risks to prices, and pointed out that the importance of stabilizing underlying prices at around 2% had increased. He indicated that the BOJ would examine medium- to long-term inflation expectations and wage growth trends going forward.