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BoJ minutes: QQE has been exerting its intended effects

FXStreet (Bali) - Minutes of the BoJ monetary policy meeting have been published, providing no surprises to the market, as the Central Bank decided, by a unanimous vote, to continue conducting money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.

Key points

"Japan's economy has continued to recover moderately as a trend, although the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike has been observed. Exports have shown some weakness."

"With regard to the outlook, Japan's economy is expected to continue its moderate recovery trend, and the effects of the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike are expected to wane gradually. The year-on-year rate of increase in the CPI is likely to be around 1¼ percent for some time.

"Risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects for the European debt problem, and the pace of recovery in the U.S. economy."

"Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with the QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate."

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