First, while the inflation rate consistent with sustainable price stability pursued by the Bank is considered to be largely affected by the general public’s current perception of price developments, 2 percent in terms of the year-on-year rate of change in the CPI had rarely been achieved in the past two decades, and based on the general public’s current perception of price developments that is built on such past experience, the 2 percent inflation rate is considerably higher than the inflation rate that is considered at this point to be consistent with sustainable price stability.
Second, this suggested that, even if the central bank were to set 2 percent inflation as a target, this alone is highly unlikely to substantially influence inflation expectations.