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:
- Summary of Opinions at the Monetary Policy Meeting on June 15 and 16, 2023