BOJ Minutes - Current policy not enough to achieve 2% inflation target

The minutes of the recent Bank of Japan (BOJ) policy meeting released today showed-

• One member argued that monetary easing effects gained from the current yield curve were not enough for 2 percent inflation to be achieved around fiscal 2019, demand increases needed.
• One suggested YCC does not rule possibility of negative 10-year yield.
• From the viewpoint of generating such an increase in demand, it was questionable whether the current yield curve in real terms was sufficiently accommodative relative to the natural yield curve.
• Members agreed that the economy was expanding moderately, with a virtuous cycle from income to spending operating.
• Since there remained an excess supply capacity in the labor market, upward pressure on wages was likely to be limited for the time being.
• Momentum towards price goal being maintained said most members.
• BoJ could change policy if JPY appreciation were to impact economy.