The Bank of Japan (BoJ) released the Summary of Views of its July Monetary Policy Meeting on July 30-31, with key findings outlined below.
Key quotes
Several members see economic activity and prices developing in line with the BoJ’s outlook.
Some see scope to raise the policy rate “significantly low,” citing negative real rates at 25-year lows.
Opinions are divided on the timing: some want more data, others are ready to act now.
BoJ official expects small hike to have no tightening effect
One member urges timely rate hikes to avoid the need for rapid increases.
Members aim for a neutral rate of “at least around 1%” as a medium-term target.
Plans to reduce JGB purchases are seen as promoting market function, not tightening it.
Careful monitoring of the JGB market is needed as the BoJ reduces purchases.
Ongoing debate on the sustainability of the inflation/wage growth cycle.
Market reaction
Following the BoJ Summary of Opinions, the USD/JPY pair is losing 0.45% on the day to trade at 146.10, at the time of writing.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
