The Bank of Japan internally demands to abandon the vague inflation target to pave the way for interest rate hikes.

CoinVoice has recently learned that according to analysis reports from Jin10, the pressure within the Bank of Japan to abandon a vaguely defined inflation indicator is growing. Previously, Bank of Japan Governor Kazuo Ueda stated that "underlying inflation" (which mainly focuses on the strength of domestic demand and wages) is still below the central bank's 2% target, providing a reason for gradual interest rate hikes. The problem is that there is no single indicator to measure "underlying inflation," which makes it a target for critics.

Critics say that both overall inflation and core inflation indicators have exceeded targets for years, but the Bank of Japan has relied too heavily on a vague indicator to guide its monetary policy. Now, even some members of the Bank of Japan's policy board are calling for the central bank to change its communication style, shifting towards a more hawkish approach focused on the overall inflation rate. Senior observer of the Bank of Japan, Naomi Muguruma, stated that the Bank of Japan may gradually eliminate the concept of "potential inflation" from its policy communications in preparation for the next interest rate hike, which could occur as early as October.