TOKYO (MNI) – Some Bank of Japan board members expressed concern
over the impact of high international commodity prices on the global
economy at the Feb. 14-15 policy-setting meeting, the BOJ’s minutes
released on Thursday showed.
“Some members raised the possibility that, depending on future
developments in international commodity prices, the sustainable growth
of the global economy might be hampered if such developments led to
greater fluctuations in economic activity and prices in various
countries,” the minutes said.
“As for emerging economies in particular, a few members expressed
the view that attention should be paid to the possibility of a
substantial rise in the inflation rates adversely affecting these
economies and thereby causing capital outflows and political unrest.”
After a two-day policy-setting meeting that ended on Feb. 15, the
BOJ’s policy board voted unanimously to continue the bank’s very
stimulative, practically zero interest rate policy by maintaining the
target for the overnight call loan rate among commercial banks at zero
to 0.1%.
The decision was widely expected as the economy continues moving
toward a moderate recovery path while remaining mired in mild deflation.
The BOJ board has said that it will maintain its accommodative
policy stance until price stability comes in sight.
Governor Masaaki Shirakawa and other board members have pledged to
closely monitor the outlook for Japan’s economy and prices, and to take
policy actions in a timely and appropriate manner.
In February, the BOJ board slightly upgraded its economic
assessment from the previous month, saying, “Japan’s economy is
gradually emerging from the current deceleration phase.”
“As the growth rate of the global economy has started increasing
again led by emerging and commodity-exporting economies, Japan’s exports
and production are showing signs of resuming an uptrend.”
tokyo@marketnews.com
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