MNI BRIEF: BOJ Oct Opinions: Must Carefully Examine Weak Yen Impact

Bank of Japan board members emphasised the need to carefully monitor or examine the impact of the weak yen on economic activities at the October 27-28 policy meeting, the summary of opinions at the meeting released on Monday showed.

"The recent yen depreciation reflects differences in inflation rates and monetary policy stances among economies. When discussing the impact of the depreciation, various transmission channels should be taken into account, including those through the real economy and financial markets," one member said, see: MNI INSIGHT: BOJ May Consider 10-Yr Yield If Yen Hits 125 Fast.

A separate member said that "monetary policy will be normalized in Japan when the price stability target is achieved in a stable manner irrespective of policy developments in other economies. Given that the target has not been achieved, there is absolutely no reason to adjust monetary easing. The Bank should clearly explain this point to the public."

"Regarding the rise in international commodity prices and the yen's depreciation, it is important to consider their impact on the macroeconomy when conducting monetary policy. At the same time, it is necessary to keep in mind that their effects on each economic entity are uneven depending on industry and size," another member said.