MNI BRIEF: June Board Opinions: BOJ Must Keep Forward Guidance

One Bank of Japan board member said that the bank must maintain the forward guidance for the policy rate to support corporate financing and stability in financial markets at the June 16-17 meeting, opinions released on Monday showed.

Many BOJ board members saw the need to keep the current easy policy amid high uncertainties, brushing off speculation held by non-Japanese players that the BOJ would adjust forward guidance. "In order to close Japan's negative output gap and increase income and employment, it is necessary for the BOJ to aim at achieving a high-pressure economy by stimulating the economy, in coordination with the government's fiscal and other policies,” one member said.

“Although the range of items increasing in price has broadened due to the rise in commodity prices and movements in foreign exchange rates, it cannot be said that the price stability target has been achieved amid a virtuous cycle. It is therefore appropriate for the Bank to maintain the current monetary policy,” another member said,