The Bank of Japan published the minutes of the October meeting, not to be m, mistaken for the most recent meeting where a surprising tweak was made to the central bank's monetary policy, sending the yen on a tear.
BoJ minutes
BoJ October meeting minutes: Members agreed must maintain the current easy policy to stably, and sustainably hit the price target.
BoJ minutes: One member said the effect of BoJ\s easing may be heightening as a moderate increase in inflation expectations push down real interest rates.
BoJ minutes: One member said the rise in nominal wages is crucial for inflation to stably hit 2%.
One member said while there is no immediate need to tweak policy, BoJ must keep eye out on side-effects of easing, examine how rising prices would affect households' behaviour and wages
This member added BoJ must keep checking whether market players are prepared for when BoJ exits easy policy, scrutinise how a future exit could affect markets.
A few members said BoJ must be mindful of how future interest rate rise may affect mortgage loans.
One member said boj must deepen analyses on relationship between japan's inflation and wages.
A few members said recent sharp yen falls heightening uncertainty for firms, have many demerits for Japan's economy
One member said fx rates must be determined by fundamentals.
One member said increase in BoJ's bond buying to keep yield curve from rising has a stimulative effect on economy by channelling more money to market.
One member said the fact that long-term interest rates remain at low level has big positive impact on economy.
One member said bond market stability is important, must monitor market developments carefully.
Govt rep said hopes BoJ continues to work closely with govt, guide policy appropriately with eye on economic, price, market developments.
A few members said price rises are broadening, there is chance companies are changing their price-setting stance.
One member said consumer inflation likely to continue rising as wholesale inflation remains elevated due to rising raw material costs.
One member said service prices, non-energy public fees showing signs of rising, may keep inflation fairly elevated.
About the Bank of Japan
The Bank of Japan publishes a study of economic movements in Japan after the actual meeting. These meetings are held to review economic developments inside and outside of Japan and indicate a sign of new fiscal policy. Any changes in this report tend to affect the JPY volatility. Generally speaking, if the BoJ minutes show a hawkish outlook, that is seen as positive (or bullish) for the JPY, while a dovish outlook is seen as negative (or bearish).
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