BOJ March meeting minutes says Japan’s tightening is different to that in the US and EU

These are the minutes of the meeting helped on March 18 and 19 2024.

There has been so much water under the bridge since then, including the April (25 and 26) meeting and two rounds of intervention to prop up the hapless yen. Most recently just a few hours ago:

(links to all the good stuff in that post)

Full text of the BoJ minutes are here.

Headlines via Reuters:

  • One member said impact of rise in short-term rate to around 0.1% on
    economy will likely be limited
  • Many members shared
    view long-term rates should basically be set by markets
  • Ne member said
    adjustment to BOJ’s bond buying amount should be done spending plenty
    of time to avoid causing sharp market volatility
  • A few members said
    the BOJ should at some point in the future reduce bond buying amount,
    shrink its bond holdings
  • A few members said BOJ March move is different from the monetary
    tightening phase experienced in US, Europe
  • One member
    said BOJ should slowly but steadily move towards policy normalisation
    with an eye on economic, price developments
  • A few members
    said while not a big risk now, there is chance of overshoot in
    Japan’s inflation

The representative from the Ministry of Finance at the meeting chimed in:

  • Expects BOJ to continue aiming for achievement of 2% inflation target
    in stable, sustained manner
  • while wages, capex showing positive
    movements, consumption lacking strength, overseas risks exist

The representative from the Cabinet Office said:

  • The government shares the BOJ’s view that positive wage-inflation cycle is emerging
  • BOJ must continue to support the economy for a financial standpoint to achieve sustained, domestic demenad-drive economic recovery

This article was written by Eamonn Sheridan at www.forexlive.com. Source