The minutes from the Bank of Japan's (BoJ) December meeting, which were released recently, indicate a significant focus on the country's monetary policy direction. Members of the BoJ discussed the easing of inflationary pressures in Japan and emphasized the need to closely monitor wage and price movements. A member suggested that the timing to normalize monetary policy is approaching, highlighting the need for clear communication regarding the balance sheet and profit mechanisms due to the substantial holdings of Japanese Government Bonds (JGBs) and the associated interest rate risk. The criteria for ending negative interest rates and Yield Curve Control (YCC) were agreed upon, to be based on economic, price, and market movements. Discussions also revolved around the establishment of a positive wage-inflation cycle as a precondition for ending negative rates and YCC. Some members expressed the view that the BoJ is not behind the curve and can wait for the developments of the spring wage talks before making policy changes. The minutes also revealed that while some members see the risk of falling behind, others downplayed the risk of inflation deviating from the 2% target despite wage hikes in 2024. There was a consensus on the need for a comprehensive assessment to determine if a positive wage-inflation cycle is underway and to continue debating the timing and appropriate pace of a rate hike after the end to negative rates. Staff findings indicated that companies are changing prices more frequently, which could signal a shift in the perception of limited price rises. Moreover, there were suggestions to examine the feasibility of the current framework for risky asset buying as the economy improves, and to maintain an accommodative policy while adjusting monetary support. A government representative warned that lacking private demand could push Japan back to deflation, while several members believe the probability of achieving 2% inflation sustainably is increasing gradually.
β οΈ BOJ BOARD AGREED TO DEEPEN DEBATE ON STIMULUS EXIT - DEC MEETING MINUTES Full Story β https://t.co/ajBv2gWMnB
BOJ saw need in December for debate on future rate hike pace - minutes https://t.co/sh7ecfQyQe https://t.co/qbuLY0lPgm
π΄ BOJ MINUTES: SEVERAL MEMBERS BELIEVE PROBABILITY OF ACHIEVING 2% INFLATION SUSTAINABLY IS INCREASING GRADUALLY.
π΄ BOJ MINUTES: STAFF FINDINGS SHOW COMPANIES CHANGING PRICES MORE FREQUENTLY, INDICATING POTENTIAL SHIFT IN PERCEPTION OF LIMITED PRICE RISE
π΄ BOJ MINUTES: STAFF INDICATES SIGNS OF CHANGE IN JAPAN'S PROLONGED MINDSET ABOUT INFLATION IN PAST 1-2 YEARS
π΄ BOJ MINUTES: STAFF PRESENTS FINDINGS ON LONG-TERM REVIEW OF PAST MONETARY POLICY TO BOARD
π΄ BOJ MINUTES: GOVERNMENT REPRESENTATIVE WARNS LACKING PRIVATE DEMAND COULD PUSH JAPAN BACK TO DEFLATION
π΄ BOJ MINUTES: MEMBER SUGGESTS EXAMINING FEASIBILITY OF CURRENT FRAMEWORK FOR RISKY ASSET BUYING AS ECONOMY IMPROVES, WHILE BEING MINDFUL OF IMPACT ON MARKETS.
π΄ BOJ MINUTES: MEMBERS AGREE TO CONTINUE DEBATING EXIT TIMING AND APPROPRIATE PACE OF RATE HIKE AFTER END TO NEGATIVE RATES.
π΄ BOJ MINUTES: MEMBER SUGGESTS ROOM FOR POLICY ADJUSTMENTS WITHOUT AFFECTING 2% INFLATION TARGET
π΄ BOJ MINUTES: MEMBER ADVOCATES MAINTENANCE OF ACCOMMODATIVE POLICY WHILE ADJUSTING MONETARY SUPPORT
π΄ BOJ MEETING MINUTES: SOME MEMBERS SUGGEST BANK LIKELY TO SUSTAIN SIGNIFICANT MONETARY EASING IN SHORT TERM, EVEN WITH CONCLUSION OF NEGATIVE RATES AND YIELD CURVE CONTROL (YCC)
π΄ BOJ MINUTES: MEMBER SUGGESTS COMMUNICATION OF BALANCE SHEET AND PROFIT MECHANISM DUE TO MASSIVE JGB HOLDINGS AND INTEREST RATE RISK
π΄ BOJ MINUTES: MEMBER URGES ANALYSIS OF NEGATIVE RATES' IMPACT ON ECONOMY
π΄ BOJ MINUTES: SOME MEMBERS SUGGEST MAINTAINING YCC AS LOOSE FRAMEWORK TO PREVENT DESTABILISATION OF LONG-TERM YIELDS
π΄ BOJ MINUTES: MEMBERS AGREE ON CRITERIA FOR ENDING NEGATIVE RATES AND YCC TO BE DECIDED BASED ON ECONOMY, PRICES, AND MARKET MOVEMENTS
π΄ BOJ MINUTES: MEMBER DOWNPLAYS RISK OF INFLATION SURGE, WARNS OF ENORMOUS COSTS IF SHARP MONETARY TIGHTENING NEEDED
π΄ BOJ MINUTES: MEMBER WARNS AGAINST MISSING POLICY CHANGE OPPORTUNITY TO PREVENT RISING INFLATION FROM IMPACTING CONSUMPTION.
π΄ BOJ MINUTES: MEMBER SUGGESTS TIMING TO NORMALIZE MONETARY POLICY IS APPROACHING.
π΄ BOJ MINUTES: MEMBER DISCUSSES PRIORITIZING DETERMINATION OF WAGE-INFLATION CYCLE AFTER ADDRESSING SIDE-EFFECTS OF YCC
π΄ BOJ MINUTES: MEMBER NOTES EASING INFLATIONARY PRESSURE IN JAPAN, STRESSES SCRUTINY OF WAGE AND PRICE MOVEMENTS
π΄ BOJ MINUTES: MEMBER DOWNPLAYS RISK OF INFLATION DEVIATING 2% DESPITE WAGE HIKES IN 2024
Some BoJ Members Said Itβs Not Too Late To Make A Decision Post-Spring Wages - Minutes - Members Agreed Must Patiently Maintain Easy Policy - Many Members See Need To Confirm Positive Wage-Inflation Cycle In Order To Consider Ending NIRP, YCC - Some Members Do See Risk Of Fallingβ¦
π΄ BOJ MINUTES: SOME MEMBERS BELIEVE BOJ IS NOT BEHIND-THE-CURVE, CAN WAIT FOR SPRING WAGE TALKS DEVELOPMENTS.
π΄ BOJ MINUTES: SOME MEMBERS SUGGEST COMPREHENSIVE ASSESSMENT NEEDED TO DETERMINE IF POSITIVE WAGE-INFLATION CYCLE IS UNDERWAY
π΄ BOJ MINUTES SHOW MEMBERS' VIEW ON POSITIVE WAGE-INFLATION CYCLE FOR ENDING NEGATIVE RATES, YCC
BoJ Minutes Of December Meeting https://t.co/CqPnuWnZi0 https://t.co/eVSPfVMB0Y
Heads Up:π―π΅ BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min) https://t.co/60QsmqCqoi
Heads Up:π¨π¦ BoC Monetary Policy Report due at 14:45 GMT (15min) https://t.co/pkFOzjm6uT