At present, although the inflation rate in Japan is improving steadily, it has remained at around 1 percent, and thus we are only halfway to achieving 2 percent inflation. In a case where downward pressure is exerted on the economy again, it may revert to deflation.
The Bank will encourage a rise in the inflation rate to the level that is appropriate for the economy by continuing large-scale monetary easing with the aim of achieving 2  7  Those who proposed inflation targeting at an early stage considered that the most convincing reason for aiming at a positive inflation rate was avoiding a risk of falling into deflation.