BoJ Minutes – Most members agreed the likelihood of hitting 2% target had been rising

Bank of Japan January meeting minutes:

• Most members expressed the recognition that the likelihood of realizing the outlook had been rising
• Some members shared the recognition that real interest rates were expected to remain significantly negative even after the rate hike
• One member expressed the view that, if underlying inflation increased, the BOJ would need to raise the policy interest rate accordingly in a gradual manner
• One member continued that it would be necessary for the BoJ to adjust the degree of monetary accommodation from the viewpoint of avoiding the yen’s depreciation and the overheating of financial activities
• One member said it would be desirable for BoJ to bear in mind that the policy interest rate should be at around 1% in the second half of fiscal 2025

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Background to this.

Posts from the day:

• Bank of Japan hikes rates – as widely expected

• ForexLive Asia-Pacific FX news wrap: USD slammed by Trump, then by the BoJ rate hike
• ForexLive European FX news wrap: Dollar stays pressured, yen slips in post-BOJ trade

Two weeks after the Bank released its ‘summary’ of the meeting

• Summary of Opinions at the Monetary Policy Meeting on January 23 and 24, 2025

The meeting last week saw the Bank on hold. The next meeting is April 30 / May1.

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