Bank of Japan July meeting minutes, full text here.
Headlines via Reuters:
Members shared a view over the need for vigilance to the risk of inflation overshoot.Many members said it was appropriate to raise rates to 0.25%, adjusting the degree of monetary support.A few members said it was appropriate to adjust the degree of monetary support moderately.One member said economic conditions were good enough to somewhat push up the current very low policy rate.One member said they must be vigilant to the impact of rising inflation, driven in part by the weak yen, on household sentiment and small firms’ costs.A few members said it was appropriate to gradually adjust very low rates now to avoid being forced to hike rates rapidly later.One member said the BOJ must adjust the degree of monetary support further if the strength of capital expenditure and wage growth could be confirmed.One member said they must carefully look at various risks in proceeding with monetary normalisation.
One member said BOJ must avoid creating too much market expectation
of future rate hikes as inflation expectations have yet to be
anchored at 2%One member said it
was difficult to move rates mechanically as there was high
uncertainty on Japan’s neutral rate level
Cabinet minister representative said must be vigilant to impact of
weak yen, rising inflation on households’ purchasing power, downside
risks to overseas economies
BOJ hiking, Fed cutting … policy divergence swings currency pairs around.
This article was written by Eamonn Sheridan at www.forexlive.com.
