MNI BRIEF: BOJ Minutes: Policy Sustainability More Important

One Bank of Japan board member said that monetary easing became further prolonged as the achievement of 2% price target during the projection period is difficult at the April 27-28 meeting, the minutes released on Wednesday showed.

“in a situation where achieving the price stability target of 2% during the projection period was difficult, it was necessary for the Bank to carefully outline the significance of the target and the path toward its achievement, and continue to bear in mind that, as monetary easing became further prolonged, its sustainability would be increasingly important.”

“A different member also said that, in the current situation where the output gap was still negative and there was a significant risk of firms becoming more cautious in making business decisions, it was appropriate for the BOJ to make clear its stance that it would continue with the current monetary easing and thereby support the economy,” the minutes showed.