BoJ’s Takata: Japan Nears Inflation Goal but Accommodative Policy Still Needed

BoJ’s Takata: Japan Nears Inflation Target but Not Quite There Yet

Bank of Japan (BoJ) Board Member Hajime Takata remarked on Thursday that Japan is approaching its inflation target but still hasn’t fully reached it, reinforcing the need for the central bank to maintain an accommodative monetary stance.

"We are getting close to the target, but not yet at a point where we can consider shifting course," Takata said.

Inflation Target Still Elusive

While consumer prices have risen moderately, the BoJ views current inflation as insufficiently sustainable. This cautious stance underlines the BoJ’s commitment to support economic growth, especially amid global economic uncertainties and subdued domestic demand.

Policy Outlook

With Japan’s interest rates still among the lowest globally, any shift away from ultra-loose monetary policy will likely depend on consistent data showing durable inflation. Until then, the BoJ is expected to stay on its current course, supporting economic activity and price growth.

For continuous updates on Japan’s economic indicators and monetary decisions, visit the Tredu Japan Economy Section.