BOJ Prepares to Sustain 2% Inflation as Target Comes Within Reach
Updated
Updated · Nikkei Asia · Oct 19
BOJ Prepares to Sustain 2% Inflation as Target Comes Within Reach
1 articles · Updated · Nikkei Asia · Oct 19
Summary
Japan’s central bank is preparing to pivot from trying to achieve 2% inflation to keeping price growth stable around that level as the target comes into view.
That shift reflects a new policy challenge for the BOJ: not just lifting inflation after years of weakness, but preventing it from drifting away once 2% is reached.
Government officials remain cautious about declaring victory, leaving the BOJ wary of sending mixed messages as it adjusts its communication and policy focus.
Kazuo Ueda discussed the backdrop for that transition during G20 and other international meetings in Bangkok late last week, underscoring the global attention on Japan’s inflation path.