February 3, 2023

Members agreed Japan’s economy is picking up



The Bank of Japan’s minutes for the September meeting minutes are starting to hit the wires as follows:

 A few members said need to be vigilant to impact monetary tightening by some central banks could have on global markets.
    
Members agreed Japan’s economy is picking up.
    
Several members said weak yen could hurt households, small firms and non-manufacturers.
    
One member said weak yen has effect of pushing up domestic economic activity in long-term.
    
Some members said must expand inbound tourism, capex, hike wages to maximise merits of weak yen.
    
One member said various indicators on trend inflation rising.
    
A few members said corporate price-setting behaviour may be changing.
    
One member said expects prices to continue for wide range of goods.
    
One member said must humbly watch without any preset idea risk of inflation overshooting expectations sharply, including from impact of fx.
    
A few member said there is still distance from japan achieving boj’s price target in stable, sustained manner.
    
One member said while boj needs to keep eye out on side-effects of monetary easing, no need to change policy immediately.
    
One member said recent rapid, speculative fx moves undesirable for japan’s economy.
    
Several members said boj must communicate to public its monetary policy does not directly target fx moves.
    
One member said boj must communicate exit strategy from easy policy when appropriate time comes
    
One member said monetary easing effect of boj’s policy could heighten if japan’s natural interest rate increases

More to come…


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