BOJ minutes: Private consumption has been increasing moderate

Author: Adam Button | Category: Central Banks

Highlights of the BOJ minutes for the Sept 18 and 19 meeting

  • Most members said it was appropriate to persistently continue with easing
  • Most members said inflation likely to gradually accelerate towards 2%
  • A few members said must pay attention to chance that heightening overseas risks could narrow positive output gap, and weigh on price growth
  • One BOJ member: Inflation momentum has already been lost
  • Most members agreed it as appropriate to persistently continue with current powerful easing
  • Overseas economies had been growing moderately on the whole, although slowdowns continued to be observed.
  • The U.S. economy had been expanding moderately, although relatively weak developments had been observed in the manufacturing sector
  • The European economy remained in the deceleration phase but was likely to gradually improve
  • Chinese economy continued to see stable growth on the whole, but some weakness remained in the manufacturing sector
  • Shared view it was becoming increasingly necessary to pay closer attention to the risk that momentum to hit the price goal would be lost
  • Full text
There has been no market reaction. Yesterday BOJ members were talking about coordinated central bank and fiscal stimulus. They also said there was room for more borrowing, especially at the ultra-long end of the curve.

On the yen:

In the foreign exchange market, the yen had appreciated somewhat against the U.S. dollar since the beginning of August mainly due to a heightening of investors' risk aversion, but startedto depreciate thereafter, and more recently was at almost the same level as at the time of the previous meeting. Meanwhile, the yen had appreciated marginally against the euro.
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