Bank of Japan monetary policy meeting 'Summary of Opinions' of the December meeting
- appropriate to maintain current policy as momentum for hitting price goal not heightening further
- must look at side-effects of policy while maintaining current monetary easing
- we haven't emerged from situation where BOJ must not hold any pre-set idea on policy as high uncertainty remains on global economic outlook
- BOJ must continue to examine feasibility of additional easing, prepare for next recession as among risk scenarios
- BOJ expanded QQE after sales tax hike in 2014, might need to ramp up stimulus again depending on consumption trend
- Making BOJ's price target a range, as proposed by IMF, could weaken BOJ's commitment to achieving price target
- interest rates appear to be rising recently, which could mean current policy may be insufficient in stimulating economy
- BOJ must modify its forward guidance on rates, bind it more strongly, specifically to BOJ's price target
- must be mindful of demerits of BOJ's policy, impact on financial intermediation Tokyo
I don't see anything surprising form this lot. Policy was kept on hold at the Dec. meeting, but the BOJ not ruling out moves in the future.
