Bank of Japan June 2025 meeting minutes, full text.
The June meeting minutes have been dated by the July meeting. Headlines via Reuters:
- Many members said inflation somewhat overshooting forecast but must scrutinise economic developments due to downside risk to growth from US tariff policy
- One member said must support economy with current rate level as underlying inflation likely to stagnate temporarily
- Another member said now is period where we must scrutinise impact of BOJ’s January rate hike on economy, prices
- Members shared view BOJ expected to continue raising policy rate if economy, prices move in line with its forecast
- A few members said BOJ will likely consider resuming rate hikes once there are prospects trade woes stabilise
- One member said rate hike phase may be on pause for time being, but BOJ must respond nimbly, resume rate hike depending on U.S. policy development
- One member said BOJ may need to ‘decisively’ adjust degree of monetary support even during period of uncertainty as inflation is moving above expectations
- One member said appropriate to keep policy rate at current level for time being as it will take more time to have more clarity on corporate profits, Japan-US trade talks outcome
- MOF representative said hopes BOJ takes appropriate, flexible response as needed with due consideration to bond market stability, in tapering its bond buying
- One member said the recent sharp rises in super-long yields in major economies warrants attention
- A few members said expansionary fiscal policies, loose-monetary policies sought by some countries could moderate pace of slowdown in global economy
- A few members said uncertainty remains high but downward pressure on Japan’s economy from US tariff policy may not be as strong as projected in BOJ’s previous meeting
- Some members said recent inflation overshooting projections made in April quarterly report due largely to rising rice, food costs
- One member said changes in price-setting behaviour becoming embedded in food makers, restaurants so must scrutinise whether this will spread to other sectors
- Members shared view impact of past rises in import costs, recent food price rises on inflation likely to dissipate
- One member said wage momentum likely to be sustained even as tariffs weigh on corporate profits
- One member said paying attention to fact Japan seeing home-made inflation emerge such as from wage hikes driven by labour shortage
- Several members said rising prices of rice and other food products frequently purchased by households could affect households’ inflation expectations so must watch carefully
Like I said these are dated. Regardless, there isn’t much here to surprise markets. USD/JPY is little changed around 147.78.
This article was written by Eamonn Sheridan at investinglive.com.
