Nov 6, 2017
BOJ Minutes - Current policy not enough to achieve 2% inflation target
The minutes of the recent Bank of Japan (BOJ) policy meeting released today showed-
- One member argued that monetary easing effects gained from the current yield curve were not enough for 2 percent inflation to be achieved around fiscal 2019.
- From the viewpoint of generating such an increase in demand, it was questionable whether the current yield curve in real terms was sufficiently accommodative relative to the natural yield curve.
- Members agreed that the economy was expanding moderately, with a virtuous cycle from income to spending operating.
- Since there remained an excess supply capacity in the labor market, upward pressure on wages was likely to be limited for the time being.
- Momentum towards price goal being maintained said most members