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BoJ Summary of December Meeting: Risks continue to rise, inflation outlook remains uncertain

The Bank of Japan's (BoJ) Summary of their December meeting is out, and slumping energy prices combined with a slowing Chinese economy is seeing the Japanese central bank return to the middle, waffling on policy normalization and looking set to lean even further into their QE trench.

Key highlights (via Reuters)

Risks to global economy continue to rise as risk continues to tilt further to the downside.

Direct risks to Japan's domestic economy continue to rise, recent data signaling a further slowing of Chinese domestic economy.

Inflation is moving in positive territory, but oil price declines are hampering price growth efforts.

Inflation is not picking up as should be expected, growth outlook continues to look uncertain.

Low chance of steady improvement in output gap, continued oil price declines likely to further delay price target.

Benefits and costs of current policy must be carefully weighed.

Normalizing policy too hastily before price goals are met could exacerbate side-effects of policies.

BoJ must tolerate "temporary" falls of long-term rates to near or below zero percent.

The BoJ sees room to review current bond-buying operations.

Further fiscal and monetary coordination is needed, will be difficult to beat deflation if they move in opposite directions.

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