MNI BRIEF: BOJ Board Member Sees Need for Easier Policy

A Bank of Japan board member saw the need to further strengthen the central bank's easy monetary policy in order to achieve the 2% price target, according to a summary of opinions from the BOJ's June 17-18 meeting released on Monday.

"In the conduct of monetary policy, it is important for the Bank to take advantage of a tailwind of the expected economic recovery and strengthen the monetary easing stance so as to achieve the price stability target," one member said.

Another member said: "The BOJ should enhance its external communication in order to carry out its mandate of achieving the price stability target of 2%."

A different member said,: "It is important to push forward with reforming the economic structure, which has been delayed due to the impact of COVID-19.

"The BOJ needs to devise various ways to improve policy responses that can contribute to the sound development of Japan's economy, taking into account the global trend of economic and social structures changing toward the post-COVID-19 era," the opinions showed.

MIXED INFLATION VIEW

On inflation, one member said they expected the "environment surrounding prices to improve" in the second half of 2-21, with the inflation rate likely to increase "as pent-up demand starts materializing."

A different member said: "Prices could be pushed up depending on the situation regarding vaccinations, but such inflationary pressure is expected to be only transitory, partly due to an entrenched deflationary mindset."