The BOJ is reported to have judged that the underlying trend in consumer prices was consistent with reaching 2%. At the same time, the government is being urged to urgently shift to economic policies that reflect actual conditions.
The BOJ judged that the level of consumer prices was broadly consistent with the 2% target even when assessed on an underlying basis excluding temporary factors. The BOJ and the government are therefore focusing on the prospect of prolonged monetary easing amid rising prices.
It has been pointed out that price increases have preceded wage increases, placing a significant burden on households, and that continued wage growth is necessary. Another issue raised was the need to create high-value-added products and strengthen the growth strategy.
The BOJ is expected to move toward a phase of restraining price increases while seeking to establish inflation at 2%. In light of the decision to leave the policy rate unchanged in October, opinions have been expressed that the BOJ should proceed with rate hikes toward a neutral rate that would neither excessively stimulate nor restrain the economy.
The government aims to strengthen growth potential and stabilize the fiscal structure, while proposals have also been made to cut consumption taxes on food as a measure to address high prices. Careful consideration is being called for regarding a combination of fiscal expansion and monetary easing.