Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Currencies  >  Euro / Japanese Yen (EUR/JPY)    EURJPY   


News SummaryAll newsMarketScreener Strategies

BOJ debated whether to boost stimulus if inflation momentum stalls: October summary

share with twitter share with LinkedIn share with facebook
share via e-mail
11/10/2019 | 09:31pm EST
FILE PHOTO :A security guard walks past in front of the Bank of Japan headquarters in Tokyo

Bank of Japan policymakers debated whether extra easing measures were needed to hit the central bank's inflation target at its last policy meeting, a summary of opinions showed on Monday, as heightened risks threatened a fragile economic recovery.

Some in the BOJ's nine-member board insisted on the need to communicate to markets the central bank would maintain loose monetary policy given the time need to accelerate inflation to its 2% price goal, the summary of the Oct. 30-31 meeting showed.

One of the members said additional easing measures would be needed "without hesitation" if momentum toward achieving the inflation target falters.

"In the current situation where risks are skewed to the downside, the Bank should continue to examine whether additional monetary easing will be necessary," another board member was quoted as saying in the summary.

At the October meeting, the BOJ kept monetary policy steady but introduced new forward guidance to indicate more clearly its readiness to cut rates if needed, underscoring its concern over simmering overseas risks.

In its policy statement last month, the BOJ said it expected short- and long-term interest rates to stay at their present or lower levels given the possibility efforts toward achieving the elusive price target stall.

Board member Goushi Kataoka dissented on the decision to change forward guidance, saying such momentum had already been lost.

In the October meeting summary, some board members warned that long-term uncertainties remained high even as short-term risks temporarily eased on progress in U.S.-China trade negotiations.

One board member said the BOJ needed to signal that its policy stance was now further tilted toward monetary accommodation and a "downward bias in the policy rates."

However, another member said there had been no increase in risks that the inflation target would be not be met. The board members are not named in the summary.

Under its yield curve control policy, the BOJ pledges to guide short-term rates at -0.1% and the 10-year government bond yield around 0%. It also buys government bonds and risky assets to accelerate inflation to its price goal.

Japanese policymakers have been under pressure to offset the impact on the domestic economy from an overseas slowdown with a diminishing tool-kit, as soft global demand hurts the export-reliant economy.

Given heightened risks to the outlook, Prime Minister Shinzo Abe on Friday asked his cabinet to compile a package of stimulus measures to support the economy and build infrastructure to cope with natural disasters.

By Daniel Leussink

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on EURO / JAPANESE YEN (EUR/J
11/20Yen gains, yuan down as trade woes, Hong Kong strife sap risk appetite
11/19Japan considers issuing 50-year bonds to support yields
11/18BOJ can still deepen negative rates, within limits - Kuroda
11/18Kuroda denies ever saying BOJ has unlimited tools to ease policy
11/18Dollar drops as report casts doubts on trade deal
11/15BOJ breaks its stock buying pattern, sparks talk of tapering
11/14Japan may slide towards recession as 'Abenomics' impact fades
11/12Views shift sharply on whether BOJ's next move will be easing or tapering
11/12Dollar stalls after Trump speech reveals little on trade
11/11Japan's Nikkei edges up on exporters, TOPIX falls
More news
Duration : Period :
Euro / Japanese Yen (EUR/JPY) Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EURO / JAPANESE YEN (EUR/J
Short TermMid-TermLong Term