Another Policy Revision Seen to Add Uncertainty: BOJ Minutes


Tokyo, March 15 (Jiji Press)--A Bank of Japan policymaker said at the central bank’s January policy-setting meeting that another policy revision soon after one in December could increase uncertainty about the central bank’s policy management, according to minutes of the meeting released on Wednesday.

The minutes also showed that several BOJ Policy Board members said the BOJ should again carefully explain the need to continue its yield curve control policy as part of its massive monetary easing framework.

The BOJ kept its easing policy unchanged at the Jan. 17-18 meeting, despite speculation that the BOJ could further revise its policy after it tweaked the yield curve control policy in December, raising its upper limit on the benchmark 10-year Japanese government bond yield to 0.5 pct from 0.25 pct.

Meanwhile, a Policy Board member noted at the January meeting that it was necessary to pay attention to the cumulative impact of monetary tightening by the U.S. Federal Reserve as the move could have lagged effects.

Still, BOJ policymakers shared the view that Japanese financial institutions were likely to “remain highly robust on the whole,” mainly because they had sufficient capital bases.

[Copyright The Jiji Press, Ltd.]

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