BOJ says 2% inflation target generally achieved, maintains policy rate
TOKYO (Kyodo) -- The Bank of Japan said Friday that underlying inflation has generally reached its 2 percent target, nearly 14 years after the goal wa
The Bank of Japan reported on Friday that underlying inflation has largely met its 2 percent target, a milestone achieved nearly 14 years after the goal was established. This assessment was included in the bank's latest quarterly economic outlook report, released following a two-day policy meeting. As anticipated, the central bank decided to keep its benchmark interest rate steady around 1.25 percent. One of the nine board members, Hajime Takata, dissented with the decision.
The BOJ indicated it will continue to raise its policy interest rate and modify the extent of monetary accommodation, as underlying inflation is currently at a level that aligns closely with the price stability objective of 2 percent, while financial conditions have been accommodating. In addition, the bank chose to speed up the sales of exchange-traded funds it holds.
For the current fiscal year ending in March, the BOJ anticipates the Japanese economy to grow by 0.7 percent, slightly higher than its prior prediction of 0.6 percent growth. The outlook for core consumer price inflation remains unchanged at 2.5 percent.
Earlier this week, both the U.S. Federal Reserve and the European Central Bank announced they would maintain their respective policy rates at unchanged levels.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
