BOJ’S SUMMARY OF OPINIONS: EASY MONETARY CONDITIONS ARE EXPECTED TO CONTINUE

Bank of Japan (BoJ) published the Summary of Opinions from its March monetary policy meeting on April 25 and 26, with the key findings noted below.

Key quotes

“One member said if trend inflation accelerates, BOJ will adjust degree of monetary easing but accommodative financial environment likely to continue for time being.”

“One member said if forecasts under quarterly report are met, interest rates might rise to levels higher than markets currently price in.”

“One member said one option would be to hike rates moderately in accordance with economic, price, financial developments, to avoid shock from abrupt policy shift.”

“One member said must hike rates at appropriate timing as likelihood of achieving our forecasts heightens.”

“One member said BoJ must deepen debate on timing, pace of future rate hike.”

“One member said extent of consumption recovery toward latter half of this year will be key in considering next policy change timing.”

“One member said if inflation overshoot continues against backdrop of weak yen, pace of policy normalisation may become faster.”

“One member said households' purchasing power remains weak so must maintain easy monetary conditions for time being.”

“One member said appropriate for BOJ to indicate, at some point, path toward reducing its bond buying.”

“One member said BOJ must proceed with shrinking its balance sheet including by reducing bond buying when right time comes.”

“One member said even if it takes a long time, BOJ must eventually eliminate its ETF holdings.”

“One member said must be mindful of upside risk to inflation as weak yen, rising crude oil prices affecting cost-push pressure.”

“One member said weak yen weighs on economy short-term, but may push up trend inflation by boosting output, income in medium-, to long-term horizon.”

“One member said must be vigilant to various upside risks to inflation, such as weak yen, fiscal stimulus and chance of stronger wage-inflation spiral