The BOJ judged that the 2% inflation target had been reached and said it would leave the policy rate unchanged. It also decided to accelerate the pace of ETF sales.
At its Monetary Policy Meeting, the Bank of Japan judged that the underlying inflation rate had reached the 2% target. The policy rate was left unchanged at approximately 1.25%, while an additional rate hike was deferred by a majority vote.
As the inflationary phase continues, the focus of the BOJ’s policy is shifting from raising prices to maintaining price stability at 2%. The assessment that the target had been reached was supported by the spread of wage increases and the establishment of pass-through into service prices.
The Outlook Report revised its assessment of underlying inflation to “a level broadly consistent with 2%.” At the same time, the BOJ indicated that it would avoid accelerating the pace of policy changes and would confirm economic trends and financial market stability.
Governor Ueda Kazuo (植田 和男) is scheduled to hold a press conference on the afternoon of the 30th to explain future policy and the factors considered in making the decision. A decision was also made to accelerate the pace of ETF sales.