Earlier from Japan:
From the minutes, Headlines via Reuters:
- Members agreed must patiently maintain easy policy
- Many members said must confirm positive wage-inflation cycle in order to consider ending negative rates, YCC
- A few members said decision on whether positive wage-inflation cycle is in place must be made comprehensively, not at looking at particular data
- A few members said don't see risk of BOJ being behind-the-curve, can wait for developments in this spring's annual wage talks
- One member said even if wage hikes in 2024 overshoot expectations, risk of trend inflation sharply deviating 2% was small
- One member said japan's inflationary pressure subsiding, important to carefully scrutinise wage, price moves
- One member said BOJ can spend ample time determining wage-inflation cycle as it has already addressed side-effects of YCC
- One member said timing to normalise monetary policy was nearing
- One member said BOJ must not miss opportunity to change policy to prevent rising inflation from hurting consumption
- This member said risk of inflation rising too much and requiring sharp monetary tightening was small, but if this happens the cost would be enormous
- Members agreed what means, and what order, BOJ would end negative rates and YCC must be decided looking at economy, price, market moves at the time
Full text is here:
Collapsing inflation will be a conundrum for Bank of Japan Governor Ueda.
