TREE NEWS reports: The Bank of Japan will evaluate at next week’s policy meeting whether underlying inflation has reached its 2% target, people familiar with the matter said Wednesday. Such a determination would mark a symbolic turning point, signaling the central bank is moving away from the long-standing monetary policy stance aimed at fighting deflation. The BOJ first set its 2% inflation target in January 2013.
BOJ to Assess Whether Inflation Has Hit 2% Target at Next Week’s Meeting
The symbolic weight here outweighs the immediate policy signal: declaring that underlying inflation has reached target would formally close a deflation-fighting era the BOJ has operated under since 2013, which matters for how Japanese rate expectations and yen-sensitive carry trades are framed globally. Because the assessment is described as a judgment rather than a decision, the open question is whether the BOJ treats this as a threshold to act on or merely a milestone to acknowledge. Watch the language around "underlying" inflation — that qualifier is where the real signal sits.
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