At a press conference following the 30 October meeting, BOJ Governor Ueda (植田 和男) stated that inflation had reached the 2% target. He indicated that the BOJ would maintain the current 1.25% policy rate while continuing to conduct policy with future rate hikes in mind.
At a press conference following its monetary policy meeting on 30 October, the BOJ officially stated that year-on-year consumer price inflation had reached 2%. It explained its outlook for prices and its policy management, including trends in underlying inflation.
The BOJ uses multiple indicators for underlying inflation, with emphasis placed on medium- to long-term inflation expectations, which measure future price expectations among households, businesses and markets. The BOJ noted that it remained attentive to upside risks to underlying inflation.
The policy rate will remain at the current 1.25%, while the BOJ indicated that it would continue considering rate hikes. Following the achievement of the 2% target, the aim appears to be containing further increases in inflation expectations.
Mizuho Research & Technologies economist Monma Kazuo (門間 一夫) described the development as a “historic moment,” while some views characterized the achievement as a “surprise.”