Caution Urged to Avoid Signal of Tightening at Latest BOJ Meeting

Politics

Tokyo, March 29 (Jiji Press)--A call for caution to avoid sending a signal of monetary tightening was raised from among participants of the Bank of Japan's latest policy-setting meeting, a summary of opinions at the meeting showed Monday.

The call came as the central bank revised its asset-purchasing policy at the Policy Board meeting on March 18-19, scrapping the target of annually buying 6 trillion yen in exchange-traded funds (ETFs).

The decision was supported by many BOJ board members as enhancing the sustainability and flexibility of asset purchases by the bank, according to the summary.

At the same time, there was an opinion that "it is necessary to be careful so as to avoid a misunderstanding that the bank has adopted a less accommodative stance on monetary policy."

In a policy statement issued after the meeting, the BOJ said it would now tolerate the benchmark 10-year government bond yield moving between around plus and minus 0.25 pct from zero pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press