BoJ Summary of Opinions: Room for current JGB purchases to be revised

The Bank of Japan (BoJ) publishes its Summary of Opinions that precedes the full minutes of central bank’s January monetary policy meeting, with the key points noted below.

It is necessary to pay close attention to bank profits. 

Bank profit margins have fallen because of increase in deposits has exceeded an increase in loans.

Room for current JGB purchases to be revised.

If downside risks to economy and prices materialise, BOJ should be prepared to make policy response.

Important to continue with current monetary easing.

Need ways to avoid expectations of no policy change becoming fixed even though price forecasts being downgraded.

A stance of taking swift, flexible action, including additional easing, in response to changes in situation is desirable.

Prices expected to be pushed down due to large fall in oil prices since last autumn.