Was there heated debate at the Bank of Japan January meeting?


A Reuters analyst says there was a heated debate at the BOJ’s monetary policy meeting in January.

Such a view of the atmosphere of the meeting is not apparent from the previously published Summary:

Of course there were disagreements. That’s what policy meetings are for discussing. But as far as “heated” is concerned, it’s hard to say.

Reuter’s key points from the meeting:

  • Most thought it appropriate to maintain the current easy policy including YCC

  • Crucial to generate positive economic, price cycle to achieve goals
  • Yields should be prevented from rising, taking into account the performance of bond mkt
  • It should take more time to measure the impact of the December tweak on the JGB band
  • When it’s time to exit the ultra-easy policy, you need to measure the market impact
  • Revision of the policy will be necessary at some point, but not now
  • Inflation in Japan is expected to ease in the second half of the year
  • Cost pressure is already starting to ease
  • Tokyo now sees no immediate change in policy after Kuroda in April
  • Next policy adjustment possible in the summer

Governor Kuroda of the Bank of Japan

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