MNI BRIEF: BOJ Minutes: New Policy Framework Future Guideline

A Bank of Japan board member believes that the bank's new policy framework continues to be the basic guideline for monetary easing for a few years to come, according to the policy minutes from the BOJ Board meeting held between March 18-19 and released today.

At the March meeting the BOJ board decided to tolerate the 10-year interest rate moving in a range of -0.25% to +0.25% but the Board agreed that it was appropriate, for the time being, to conduct yield curve control with a priority on stabilizing the entire yield curve at a low level.

"Some members expressed the view that, in order to make clear that monetary easing would be continued for a long period, the inflation-overshooting commitment, through which the Bank implemented a "makeup strategy," was extremely important," the minutes showed.

"One of these members added that, since a deflationary risk was a matter of concern at present, the commitment showed the Bank's strong stance that it would not head toward an exit easily."