4  BIS central bankers’ speeches  B. Price stability target and medium- to long-term inflation expectations  In my proposal, the price stability target of 2 percent is set as a medium- to long-term goal because I think the 2 percent target may become consistent with Japan’s economic fundamentals only in the medium to long term.
The Bank’s commitment to achieving the price stability target of 2 percent does not mean that a temporary achievement of this rate is sufficient. It is important to maintain the 2 percent target in a stable manner. To this end, it is necessary for not only the observed inflation rate but also medium- to long-term inflation expectations to be about 2 percent.