Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

BOJ board debated newcomer's calls for easing - October meeting summary

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/09/2017 | 01:46am CEST
FILE PHOTO: A Japanese flag flutters atop the Bank of Japan building in Tokyo

TOKYO (Reuters) - The Bank of Japan's nine-member board debated calls from one of its policymakers to target the longer end of the yield curve at a rate review in October, a summary of their opinions showed, with several stressing that the current stimulus was sufficient.

One board member said the BOJ should pledge to guide the 15-year government bond yield lower than 0.2 percent, instead of aiming to guide the 10-year yield around zero percent.

Another board member countered such calls for further easing, saying that taking "extreme steps" to quicken the achievement of the BOJ's 2 percent inflation target could destabilise financial markets, the summary showed on Thursday.

Expanding stimulus now was inappropriate because it was uncertain whether such a step could help achieve 2 percent inflation earlier, a third member was quoted as saying.

"The current policy is the most appropriate one to lay the grounds for companies to boost productivity, with the smallest degree of uncertainty over its effect on the economy," the member said.

At the October rate review, the BOJ kept monetary policy steady by a 8-1 vote. Newcomer Goushi Kataoka dissented to the decision, arguing that the bank should make a stronger commitment to ramp up stimulus if domestic factors delay achievement of its target.

Kataoka also called for the BOJ to guide 15-year bond yields below 0.2 percent through its bond purchases. It was unclear at the time whether he wanted the bank to target both 10- and 15-year yields or to switch to targeting 15-year bond yields.

In a quarterly review of its projections also released after the Oct. 30-31 meeting, the BOJ roughly maintained its optimistic price forecasts and its projection that inflation will hit 2 percent during the fiscal year ending in March 2020.

But several board members expressed concerns over Japan's inflation prospects, with one pointing out that price growth will come under pressure from falling smartphone bills and the fading effect from past gains in energy costs, the summary showed.

"It may take some time before inflation reaches 2 percent," another board member was quoted as saying.

Japan's core consumer prices rose 0.7 percent in September from a year earlier, marking a ninth straight month of annual gains but failing to accelerate from the previous month despite brighter signs of growth in the economy.

(Reporting by Leika Kihara; Editing by Sam Holmes and Eric Meijer)

By Leika Kihara

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
10:17pC&S WHOLESALE GROCERS : Employees at C&S Wholesale Grocers Corporate Headquarters Pack 100,000+ Meals
PU
10:17pISED INNOVATION SCIENCE AND ECONOMIC DEVELOPMEN : Minister Bains attends roundtable on digital and data transformation
PU
10:16pDollar falls ahead of U.S.-China trade talks, on Trump Fed criticism
RE
10:16pNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
10:12pCanadian dollar posts 10-day high as Trump comments pressure greenback
RE
10:09pFirst Quantum worker dies at Cobre Panama project
RE
10:07pExclusive - Trump says not thrilled with Fed's Powell for raising rates
RE
10:05pWall Street ends higher on optimism over trade talks
RE
09:59pBOND REPORT : 10-year U.S. Government Bond Yield Slides To Lowest Since May
DJ
09:57pABRAHAM : Rice deal with Iraq to benefit American producers
PU
Latest news "Economy & Forex"
Advertisement