Since 1995, the target has been to hold the trend of inflation inside a range of 1 to 3 per cent, with a focus on the midpoint of 2 per cent. Inflation targets provide an anchor for policy and an anchor for people's inflation expectations.
Compared with other countries, households in Japan have a strong tendency to favor safe assets, and even in a prolonged low interest rate environment, a large proportion of household financial assets continue to be deposits. In Japan, however, the elderly hold more stocks than younger people.4 Also, some people seem to begin investing in stocks after retirement.