The Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Friday, Dec. 19, 2025. Photographer: Akio Kon/Bloomberg via Getty Images

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The Bank of Japan declared that underlying inflation in the country was "generally consistent" with its target of 2%, the first time it has made that assessment since adopting the target in 2013.

Before this, the BOJ used to say that underlying inflation has been "approaching 2 percent."

This comes as the central bank expectedly held rates at 1.25%, still at its highest level since 1995.

The decision was split 8-1, with board member Hajime Takata dissenting. Takata had wanted the bank to hike its policy rate to 1.5%.

The BOJ also upgraded its inflation forecast for its fiscal year 2027 to 2.6% from 2.4%, with the so-called "core-core" inflation forecast also raised to 2.7% from 2.6%.…