Minutes from the Bank of Japan December 19 & 20 meeting
- Most members shared view momentum for Japan's inflation to reach 2 pct inflation was being maintained
- Some members said factors that would support rise in prices going forward had been increasing
- One member said recent yen depreciation might push up prices in short run but would not raise underlying trend in inflation
- Many members said yield curve control had been functioning as intended, JGB yield curve had been formed smoothly despite global yield rises
- Many members said BOJ must pursue powerful monetary easing as still long way to go to hit 2 pct inflation target
- A few members pointed to market views that BOJ wants to guide 10-yr JGB yield at range of -0.1 to 0.1 pct, said it was inappropriate to set such "uniform standards"
- One member said it was uncertain whether amount of JGB purchases would decrease going forward under yield curve control
- One member said BOJ should set amount of its JGB purchases as operating target and make sure to reduce it incrementally
- One member said BOJ should allow for natural rise in long-term rates if they reflect prospects for improvement in Japan's economy, prices
Headlines via Reuters
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Prior to the Minutes the Bank publishes a 'Summary of Opinions', which takes away some fo the focus from the minutes themselves. For the Dec. meeting: 'Summary of Opinions' from the BOJ meeting of December 19/20
