MNI BRIEF: BOJ Sep Minutes: Mixed Views On Special Funds Options

One Bank of Japan board member said that it is appropriate for the BOJ to maintain the special program to facilitate corporate financing that is set to expire in March 2022, the minutes of the September 21-22 meeting showed on Tuesday.

Another board member said, "The special program was to be scale back if the impact of Covid-19 on economic activity dissipated, but the decision on whether to do so should be made with caution." The board members are likely to decide on whether to extend or not extend at the December policy meeting as early as possible.

A different member "expressed the recognition that the BOJ should strengthen its monetary easing stance with a view to improving the output gap and inflation expectations, and thereby achieve an economic recovery and the price stability target early."

Another member said, "a policy mix of fiscal and monetary policies had been effective during the pandemic, and it would continue to be important even in the phase when the impact of Covid-19 subsided and economic activity normalized," the minutes showed.