The BOJ's Outlook report said that it had determined that the inflation rate had reached the 2% target, making measures to curb an upside surprise the main challenge going forward. It indicated a policy of maintaining the current policy rate of 1.25%.
The BOJ's published Outlook report stated that it had determined that the inflation rate had reached the 2% target. This achievement came after a nearly 14-year journey, and measures to curb an upside in prices are now considered the main challenge.
At the monetary policy meeting, the BOJ decided to keep the current policy rate of 1.25% unchanged against the backdrop of large-scale monetary easing that had continued for many years. Because a rate hike would affect the economy, a cautious response was considered necessary.
The need to assess the balance between economic and price trends was highlighted, and the market is watching developments at the next meeting in December as it considers the timing of future rate hikes. Governor Ueda Kazuo (植田和男) expressed caution about further price increases at his press conference.
The administration's approach to economic management was also mentioned, with the view suggested that interest-rate policy should be managed based on independent, objective analysis.