BOJ minutes: the BOJ will raise rates if economic and pricing projections are specified

The members of the Bank of the Bank of Japan (BOJ) shared their opinions on the monetary policy perspectives this Thursday, according to the minutes of the meeting of March 9-19.

Outstanding comments:

• The members agreed that the BOJ would continue to increase rates if their economic and pricing perspectives materialize.
• A member said it is appropriate to pay attention to the new US policies and their impact on the global economy.
• A member said that the BOJ would need to be particularly cautious when considering the time of the next increase in rates, since the downward risks derived from US policies had increased rapidly.
• A member said that, even with augmented uncertainties, he did not justify that the Boj was always cautious, and the BOJ could face a situation in which he should act decisively.
• A member said that it is necessary to make agile adjustments to the degree of monetary accommodation if necessary to avoid overheating financial activities.
• A member said that during the phase of the next increase in the policy interest rate, the underlying inflation of the CPI could be quite close to 2%.
• A member said that it is not necessary at this time to make important changes to the bond reduction plan when the BOJ reviews its current plan in June.
• That member also said that the BOJ would need to examine, however, from a long -term perspective the reduction plan for April 2026 onwards.
• A member said that since the US Federal Reserve is not in a hurry to adjust its policy position, the Boj’s policy could be more flexible.

Market reaction:

The hard line minutes arrive in the midst of uncertainties related to trade and offer some support to the Japanese Yen (JPY) as a safe refuge, which, in turn, keeps the USD/JPY below the level of 144.00.