The Bank of Japan monetary policy meeting in June outcome is here:
In brief from today’s ‘summary'”
- Appropriate to maintain current monetary easing
- Wage growth needed,
not just cost-push inflation, to sustainably, stably hit price target - Premature to shift
policy as smaller firms becoming keen to hike wages, invest more - BOJ must maintain
easy policy with eye on side-effects, as long-term risk to prices
skewed to downside - BOJ must keep easy
policy but must be mindful of chance it is under-estimating
sustainability of Japan’s price rises - No need to make
operational tweaks to YCC as distortion in shape of yield curve has
been resolved - BOJ must consider
reviewing YCC at an early stage, even as it maintains easy monetary
policy
- Bond market function improved but still remains at low level
- There is uncertainty
on whether inflation, after slowing toward middle of current fiscal
year, will bounce back - Rise in Japan’s
inflation increasingly driven by domestic factors
- Inflationary pressure likely to remain strong for time being
-
There is strong chance consumer inflation will moderate, but won’t
slow back below 2%, toward middle of current fiscal year
Wow that last point seems very significant! The BOJ has been arguing, over and over it expects CPI to drop from around September/October, but if not below target then surely policy much be adjusted (tightened?)
Full text is here:
BoJ