Bank of Japan Governor Kazuo Ueda announced on October 30, 2026, that while underlying inflation is broadly consistent with the BOJ's 2% target, the central bank does not believe its price stability goal has yet been achieved sustainably and stably [1]. Ueda emphasized at a news conference that although the bank's 2% inflation target has been achieved, it has not yet been reached on a stable basis [1]. In terms of policy adjustments, the BOJ will maintain its current monetary policy stance while accelerating the pace of exchange-traded fund (ETF) disposals as part of its ongoing normalization efforts [1]. This measured approach reflects the central bank's cautious stance on inflation sustainability, suggesting that despite meeting the numerical target, policymakers remain concerned about the durability of price pressures in the Japanese economy.
CONCLUSION
The BOJ's decision to hold rates steady while accelerating ETF disposals signals a gradual normalization approach, with Governor Ueda's emphasis on the lack of sustainable inflation suggesting the central bank will proceed cautiously with further tightening. The distinction between achieving the 2% target and achieving it sustainably indicates the BOJ remains data-dependent and unlikely to pursue aggressive policy shifts in the near term.