With respect to the meaning of price stability, the Bank clearly stated in a specific expression that “on the basis of a year-on-year rate of change in the CPI, it falls in a positive range of 2 percent or lower, centering around 1 percent”. The Bank calls the expression “understanding of medium- to long-term price stability”.
The central bank of the United States newly introduced last week a “longer-run goal” with respect to the inflation rate and drew attention from the market. As is the case with the Bank of Japan, it also aimed at numerically clarifying the meaning of medium- to longterm price stability.