MNI BRIEF: Policy Normalisation Approaches - BOJ Opinions

Several Bank of Japan board members believe the probability of monetary policy normalisation has strengthened as the likelihood grows of achieving the 2% price stability target sustainably grows, according to the Dec 18-19 meeting's summary of opinions published Wednesday.

“While it is undesirable to make hasty decisions, it is better to be 'rough and ready than slow and elaborate,'" noted one board member, adding the Bank should not miss an opportunity to normalise monetary policy. But another member noted the bank should not rush the end of easy policy, arguing the BOJ could wait until after wage negotiations next spring without "falling behind the curve." (See MNI POLICY: Economic Concerns Weigh On BOJ's April Exit Plan)