There were a number of BOJ changes in July, such as, most notably - to allow 10bp wider fluctuation around the 0% target for 10yr JGBs
This now from the 'Summary', headlines via Reuters
- Must continue powerful monetary easing as momentum for hitting target sustained
- must make policy framework sustainable
- must scrutinise whether room to review policy framework to mitigate demerits of easy policy
- must adopt forward guidance on interest rates to show boj's unwavering commitment to hitting price goal
- now is time for boj to strengthen its commitment to hitting price goal as price moves weak
- boj should expand monetary stimulus, adopt forward guidance to stimulate demand and inflation expectations
- appropriate to allow long-term rates to move double the current range of around -0.1 to 0.1 pct
- boj should allow long-term rates to move at range of around -0.25 pct to 0.25 pct
- allowing long-term rates to rise when medium-, long-tern inflation expectations are weak could lead to rise in real rates, weigh on inflation
- boj must respond flexibly to economic, price and financial developments with eye on merits, demerits of policy
Here is the link to the full thing:
more to come
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Summary of Opinions
- precedes the Minutes (we get those on September 25)
- The 'Summary' is a guide to the discussion that took place