BOJ Summary of Opinions: Policy set to up momentum towards 2% CPI

Ivan Delgado Independent Analyst

According to the BOJ Summary of Opinions from its October meeting, the current policy is set to up the momentum towards the 2% CPI target.

Headlines

Hastening price target would cause side-effects

Costs of additional easing bigger than benefits

Current policy is most appropriate one with uncertainty over its effect smallest

Must monitor effect of current policy as taking extreme steps to quicken achievement of target could cause side-effects

Taking additional monetary easing now would have more demerits than merits

Must look at effects, costs from various perspective regarding BOJ's buying of risky assets, such as ETFs

Not surprising if BOJ lags behind Federal Reserve , ECB in exiting ultra-easy policy

Author

Ivan Delgado

Independent Analyst

Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.

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