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%. The "core-core" inflation strips out prices of fresh food and energy.