The Bank of Japan, at its monetary policy meeting to be held for two days starting on the 27th, will consider raising the outlook for the inflation rate for this fiscal year from 2.3%, which was previously announced in July. It is also expected to discuss the economic impact of
The reason why the BOJ is considering raising the price outlook at this meeting is that last month's consumer price index, excluding fresh food, grew by a high 3%, and the rapid depreciation of the yen has led to an increase in demand for goods and services. Prices may continue to rise.
However, the Bank of Japan has said that the current price hike is temporary and not accompanied by a rise in wages, and is not in the form of a stable price increase that it is originally aiming for.
Governor Kuroda has repeatedly indicated a policy of continuing large-scale monetary easing in order to support the economy toward achieving the price stability target of 2%, and this policy is expected to be confirmed at the meeting.
On the other hand, in the foreign exchange market, the yen is depreciating due to the difference in the direction of monetary policy with Europe and the United States, which is rushing to raise interest rates. I am going to intervene.
The meeting is expected to focus on the impact of the rapid depreciation of the yen on the economy and prices, and the focus will also be on how Governor Kuroda will explain the impact of the depreciation of the yen and the outlook for monetary policy at a press conference after the meeting. increase.