The full text of the minutes is here (PDF file).
Highlights:
- Most BOJ members said they would examine risks and mamke appropriate adjustments to policy when necessary
- Said exports have been somewhat weak
- Economy likely to grow above potential from summer
- Board member Sato proposed changing the economic assessment to show that risks to prices are somewhat tilted to the downside (and, guess what … he was voted down 8 to 1)
- Board member Shirai proposed changing the assessment of prices to say 2% inflation is likely to be achieved at the end of the BOJ forecast period, not in middle (and ditto, her proposal was also defeated by an 8-1 vote)
- “Many members” said prices have shown greater tendency to rise as services sector-led growth leads to improvements in labour market
- Members shared recognition that firms are shifting their price strategy to one of raising prices while increasing added value
- Some members said companies have started to pass on rising input costs directly to consumers
- Members agreed that it is important to implement the Abe government’s growth strategy to maintain sustainable growth
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Yen does … nothing. It could well continue to be a quiet sort of session across the currencies with the UK and US markets both closed Monday for Mike Paterson’s birthday Bank Spring Holiday in the UK and Memorial Day in the US.
