The current understanding is “a positive range of 2 percent or lower, centering around 1 percent”, on the basis of the year-on-year CPI inflation rate.
The unique feature in the policy commitment last October is that an explicit macroprudential condition is attached to the commitment, that is to say, the bank will continue the virtually zero interest rate policy “on condition that no problem is identified in examining risk factors, including the accumulation of financial imbalances”.