Bank of Japan July meeting minutes, full text here.
Headlines via Reuters:
- Members shared a view over the need for vigilance to the risk of inflation overshoot.
- Many members said it was appropriate to raise rates to 0.25%, adjusting the degree of monetary support.
- A few members said it was appropriate to adjust the degree of monetary support moderately.
- One member said economic conditions were good enough to somewhat push up the current very low policy rate.
- One member said they must be vigilant to the impact of rising inflation, driven in part by the weak yen, on household sentiment and small firms’ costs.
- A few members said it was appropriate to gradually adjust very low rates now to avoid being forced to hike rates rapidly later.
- One member said the BOJ must adjust the degree of monetary support further if the strength of capital expenditure and wage growth could be confirmed.
- One member said they must carefully look at various risks in proceeding with monetary normalisation.
-
One member said BOJ must avoid creating too much market expectation
of future rate hikes as inflation expectations have yet to be
anchored at 2% - One member said it
was difficult to move rates mechanically as there was high
uncertainty on Japan’s neutral rate level
-
Cabinet minister representative said must be vigilant to impact of
weak yen, rising inflation on households’ purchasing power, downside
risks to overseas economies
BOJ hiking, Fed cutting … policy divergence swings currency pairs around.
This article was written by Eamonn Sheridan at www.forexlive.com.
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