BOJ March meeting minutes - must be vigilant on accelerating inflation

The Bank of Japan Minutes of the Monetary Policy Meeting on March 9 and 10, 2023 have been released:

• Several members said must be vigilant to risk 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 may accelerate more than expected
• Members agreed there was very high uncertainty surrounding Japan's economy
• Several members said cost-push price pressure might last longer than expected if global commodity prices rise more than projected

• A few members said there were some positive signs towards achieving BOJ's price target
• A few members said must scrutinise balance of effect, cost of stimulus, but must maintain massive stimulus for now
• One member said BOJ must focus on risk of missing achievement of price target with premature policy shift, rather than risk of being too late in changing policy

• One member said shift in monetary policy would affect markets, wide range of entities so must be debated cautiously
• One member said BOJ must take steps to improve market function, including that for corporate bonds and swap markets, as needed
• One member flagged idea that as long as wage and price growth are positive and stable, they could be allowed to rise to high levels
• A few members said that idea wasn't valid as history suggests that when inflation is too high, its moves tend to become volatile
• A few members said it was appropriate to debate tweaking BOJ's policy guidance tied to Covid-19 pandemic

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From decision day back in March:

• Yen marked a lot lower after the BOJ leaves policy unchanged. USD/JPY above 136.80
• Bank of Japan leaves policy unchanged, as widely expected