The Bank of Japan (BoJ) Board members shared their views on monetary policy outlook and Yield Curve Control (YCC), per the BoJ Minutes of the September meeting.
Additional details
“Members agreed it was important to check whether wage hikes will continue next year and onward”
“said the chance of firms continuing to raise wages next year was high”
“said there was strong chance corporate wage, price-setting behavior will be sustained”
“said must check whether wage rises will broaden as 60% of Japan's small, medium-sized firms run red ink and have weak profit standings”
“said inflation could overshoot expectations as a change in corporate behavior broadens”
“agreed the BOJ must maintain current monetary easing to stably, sustainably hit price target”
“said Japan has the stable, sustained achievement of price target, accompanied by wage growth, was not yet in sight”
“said there was still a big distance before tweaking negative rate policy”
Market reaction
Following the BoJ Minutes, USD/JPY was down 0.05% on the day at 148.99.
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