The key headlines from the Bank of Japan (BOJ) summary of opinions (sort of early minutes) of the July meeting concluded last week, are crossing he wires via Reuters and Bloomberg-
- Additional monetary easing not needed, upward momentum in prices is intact
- Should set a new JGB target of 45tln yen, then reduce
- 10-year target range should not be taken so strictly
- Switching to a 0.1% rate applied to excess reserves and abolishing YCC could contribute to financial system stability
- Will take longer than expected to reach the 2% inflation target as commodity prices and inflation expectations not firm
- Main cause of weak prices is sluggish consumption making it difficult for firms to raise prices
- There is some way to go before the labour market tightening leads to rise in wages and prices
- Desirable to have in-depth discussion about whether appropriate to continue ETF purchases
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