BOJ summary of opinions
The highlights:
- BOJ must maintain powerful monetary easing is still some distance to its price target
- my small appropriate policy without preset idea, looking at output gap, impact of its policy on financial system
- must further scrutinize appropriate shape of yield curve as impact of BOJs policy of bank profitability increases
- One board member: still a long way from hitting CPI target
- One board member: must constantly mold enhancing QQE sustainability
- if BOJ thanks rates, that will hurt corporate profits via yen rise, her financial institutions by increasing credit costs
- Its true that the BOJ is buying ETF, risky assets as part of efforts to hit price goal but must look at both merits, potential demerits of this move
- BOJ must gain public understanding it could adjust policy flexibly, offer clear explanation on what exit and policy normalization means
- no change to BOJ stands of seeking to hit 2% inflation at earliest date possible
- worried that dropping phrase on timing for hitting price goal could weaken DOJ's commitment to bidding price goal
- will take some time for inflation to reach 2%
- impact of next year's sales tax hike likely smaller than prior hike but must watch impact on consumer sentiment, inflation expectations
- watching with alarm chance that potential tightening of US financial conditions could affect emerging economies, disrupt global markets
The USDJPY is moving higher on the headlines.
