BoJ Minutes: Members want more time to assess Middle East impact on Japans economy, prices

Many members want more time to assess Middle East impact on Japan’s economy, prices.

Several members noted low probability of baseline forecasts materialising, difficult to weigh downside risks to growth against upside inflation risks.One member says situation not urgent enough to justify hastening rate increases.

Members agree it is fitting to keep raising rates amid economic, price, financial shifts.

Few members say BoJ may discuss pros and cons of rate increase if inflation risks outweigh growth downside risks.

Some members say central bank could discuss rate hike if inflation risks greatly outweigh growth downside risks.

Members shared view timing, pace of future rate increases to depend on likelihood of baseline forecasts materializing.

Members agree timing, pace of future rate hikes depend on chances of baseline forecasts materialising and risks to growth, inflation.

Multiple members said central bank could modify monetary easing intensity at suitable pace if chances of baseline forecasts rising.

Member said rate increase at next meeting and beyond possible depending on economic and price risks.

Some members say faster rate hikes needed if Middle East conflict drags on to prevent inflation overshoot.

Board member says central bank shouldn’t hesitate to speed up rate hikes, possibly every few months.

One member urges easy monetary policy, cautions against rate hikes amid severe supply chain disruptions in Japan.

One member said Bank of Japan does not target currency rates in monetary policy, exchange rates should be market-determined.

Cabinet office official says BOJ must steer suitable monetary policy to secure Japan’s robust economic expansion, stable prices.

Cabinet office rep hopes BOJ steers policy according to joint statement with government.

Board members Nakagawa, Takata, Tamura jointly suggested lifting overnight policy target to 1.0% from 0.75%, rejected by board.