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

Omkar Godbole FXStreet Contributor

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.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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