The Wall Street Journal is out with an article citing skeptical Bank of Japan members saying printing money may not raise inflation expectations.
The headline has grabbed attention but there’s not much new in the article, it recaps that there was a rare split vote at the Oct 31 BOJ decision and speaks to “a person close to the central bank”.
Some [BOJ members] were “not entirely sure” about how flooding the banking sector with more cash could shore up moderating inflation expectations … “It’s hard to explain how expectations can be changed through that channel,” he said, in explaining the dissenters’ concerns.
They also highlight the Nov 19 decision:
The board members who spurned additional action are now considering what they should do at the next policy meeting scheduled for Nov. 18-19, where they will vote on whether to continue with the expanded easing, according to the people.
Some may dissent again to the continuation of the policy to make clear their disapproval, while others may consider making policy proposals of their own, the people said.