BOJ July summary: appropriate for the Bank to continue with the current monetary easing

From the Bank of Japan: Summary of Opinions at the Monetary Policy Meeting on July 20 and 21, 2022

Headlines via Reuters:

• Prolonged chip shortage, monetary tightening by some central banks are weighing on global economy
• Must be mindful of risk that monetary tightening by US, European central banks could lead to u.s. Recession, negative market shock and affect japan's economy
• Hard to foresee inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term stably hitting BOJ's target when looking at output gap, inflation expectations
• Various goods, services prices likely to gradually rise as commodity costs expected to stay high for time being
• There is chance companies' price-setting mindset is changing as various firms are hiking prices
• Boj must take additional easing steps without hesitation if needed, maintain forward guidance on interest rates
• Appropriate to decide at Sept policy meeting fate of pandemic-relief programme, given rapid renewed spike in covid infection cases
• BOJ must look not just at underlying inflation figures, but inflation expectations and outlook for prices in guiding policy
• Must accurately gauge wage developments in guiding policy
• Japan's financial system stable as a whole but must be vigilant to risk that at some point, side-effects of monetary easing could materialise

Data released at the same time:

• Japan data: June Industrial output and retail sales both rise m/m

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Earlier we had Tokyo are inflation figures:

• Tokyo July inflation data: Headline CPI 2.5% (prior 2.3%)