The BOJ judged that underlying inflation had reached 2% and indicated a policy of prioritizing stability at around 2% while considering rate hikes in preparation for the risk of inflation exceeding 2%.
At its Monetary Policy Meeting held on the 30th, the Bank of Japan judged that underlying inflation had reached its 2% target. This was the first such milestone since the target was introduced in 2013, and the BOJ said that it would be important going forward to stabilize inflation at around 2%. Its Outlook for Economic Activity and Prices also presented a forecast consistent with this level and projected that inflation would remain around the same level.
At a press conference, Governor Kazuo Ueda (植田 和男) said that reaching the target was “one milestone” and that “the price stability target has not necessarily been achieved on a sustainable and stable basis.” He explained that all 9 Policy Board members reached the same judgment.
The meeting produced a majority decision to maintain the policy rate at approximately 1.25%. Of the 9 members, including the governor, deputy governors and Policy Board members, 8 voted in favor, while the only dissenting member, Policy Board member Hajime Takata (高田 創), called for a rate hike to approximately 1.5%.
The BOJ decided to accelerate sales of ETFs held as part of its monetary easing measures, increasing annual sales from approximately ¥330 billion based on current book value to approximately ¥860 billion from January 2027. Holdings totaled approximately ¥37 trillion at the end of January 2026. The faster sales pace is expected to shorten the completion period from 112 years to approximately 43 years.