Bank of Japan April 30 – May 1 meeting minutes, full text
Headlines via Reuters:
- Many members said must carefully scrutinise each nation’s trade policy and its development given heightening downside risks to economy, prices
- A few members said BOJ must maintain current very low real interest rates to underpin economy
- One member said BOJ had no choice but to wait-and-see until US trade developments stabilised
- One member said must scrutinise whether recent tariff developments could prod Japan firms to embark on excessive cost-cuts, curb wage and investment
- Members agreed it was appropriate for BoJ to continue raising interest rates in accordance with improvements in economy, prices if BOJ’s forecasts materialise
- A few members said it was appropriate to continue raising interest rates as BOJ’s projections point to achievement of its 2% inflation target
- One member said likelihood of Japan’s underlying prices falling back again is small
- One member said BOJ may pause rate hike temporarily, but must stand ready to hike rates again depending on U.S. policy shifts
- Some members said if yen rises as a trend, that could have negative impact on Japan’s economy
- Members agreed boost to inflation from past rises in import costs, recent rises in rice and other food prices likely to dissipate
- Some members said timing of underlying inflation converging to levels consistent with BOJ’s price target likely has been pushed back by around 1 year
- A few members said inflation may overshoot forecast depending on developments in trade negotiations among countries
I guess you can read whatever you like into that lot. The risks to Japan’s economy from the US and geoplotiical dvelopemtns would seem to argue that the Bank of Japan is on hold for a while yet. IMO, of course.
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Still to come from the BOJ – Governor Ueda speaking
Earlier:
Bank of Japan Governor Ueda with Japan PM Ishiba
This article was written by Eamonn Sheridan at www.forexlive.com.
