BOJ Should Consider Further Policy Adjustments: Meeting Summary

   Tokyo, June 24 (Jiji Press)--A Bank of Japan policymaker at the central bank's June 13-14 monetary policy meeting pointed to the need for the BOJ to consider "further adjustments" to monetary easing in light of possible further inflation, according to a summary of opinions at the meeting released Monday.
   "There is a possibility that prices will deviate upward from the baseline scenario" if additional moves to pass on recent cost increases to consumer prices happen, the policymaker said, adding, "It is therefore necessary for the bank to consider whether further adjustments to monetary accommodation are needed from the perspective of risk management," the summary showed.
   The Policy Board member thus suggested that the BOJ should consider implementing an additional interest rate hike if needed after the bank ended its negative interest rate policy at its policy-setting meeting in March.
   At the June meeting, the Policy Board decided to reduce the BOJ's purchases of Japanese government bonds. It also decided to compile a detailed plan for the reduction for "the next one to two years or so" at its next policy meeting in July, after hearing opinions from financial market participants. The BOJ currently buys around 6 trillion yen of JGBs per month through its money market operations.
   At the latest meeting, one policymaker said that it is "better not to decide on a specific plan at this MPM (monetary policy meeting) but to collect views from market participants before making a decision, in order to reduce the purchase amount of JGBs to a greater extent," according to the summary. Multiple members stressed the importance of the BOJ communicating with the market as it proceeds with reductions in JGB purchases.

(2024/06/24-12:16)

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