At the Bank of Japan Governor Ueda (植田)'s press conference from 3:30 p.m., the Bank indicated that it recognized the underlying inflation rate as having effectively reached the 2% target and would forgo an additional rate hike while maintaining the policy rate at around 1.25%.
A press conference following the Bank of Japan's monetary policy meeting was broadcast live, with the Bank stating that the underlying inflation rate had reached a level consistent with its 2% price stability target. This effectively reconfirmed progress toward price stability under the framework of ultra-low interest rates and quantitative easing that has continued for many years. The outlook was updated to reflect the changes in the Outlook Report, and the achievement of the 2% target was mentioned clearly for the first time.
Regarding monetary policy going forward, the Bank indicated that it would not raise rates further and would maintain its current policy. The policy rate is expected to remain at around 1.25%, and no short-term rate increase was mentioned at this stage. Market participants indicated that this lack of action would help maintain the current interest-rate environment.
The focus of the announcement is that it formally positioned the achievement of the 2% target for the first time since its introduction in 2013. It reconfirmed the consistency between long-term monetary easing and the inflation target, and attention will be focused on updates to the economic and price outlook. There is also interest in the market's response after the official statement and the timing of any additional disclosures.