The Bank of Japan today published the minutes corresponding to the September meeting:
Some members said that you had to be attentive to the impact that monetary tightening by some central banks could have on world markets.
Members agreed that the japanese economy is rebounding.
Several members stated that the weakness of the yen could harm households, small businesses and non-manufacturers.
One member said that the yen’s weakness has the effect of boosting domestic economic activity in the long run.
Some members stated that we must increase tourism, investments and raise wages to take full advantage of the weak yen.
One member said that several inflation trend indicators are rising.
Some members stated that companies’ pricing behavior might be changing.
One member said he expects prices to continue for a wide range of goods.
One member said that one should humbly observe, without any pre-established ideas, the risk that inflation will sharply exceed expectationseven due to the impact of currencies.
Some members stated that there is still room for Japan to reach the BoJ’s price target on a stable and sustained basis.
One of the members said that although the BoJ should watch for side effects of monetary easingthere is no need to change the policy immediately.
One member said that recent rapid and speculative currency moves are not desirable for the Japanese economy.
Several members stated that the B0J should communicate to the public that its monetary policy does not focus directly on currency movements.
One of the members said that the B0J should communicate its exit strategy from monetary policy when the time comes.
One member said that the monetary easing effect of the B0J policy could increase if Japan’s natural interest rate rises.
Source: Fx Street