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     TOKYO (MNI) - Several Bank of Japan Board members considered further policy
easing amid concerns about momentum in achieving price stability targets,
according to the September BOJ Board minutes released on Wednesday.
     "Members shared the view that, while slowdown in overseas economies
continued to be observed and their downside risks seems to be increasing, it was
becoming necessary to pay close attention to the possibility that the momentum
toward achieving the price stability target would be lost," the minutes from the
meeting held on September 18-19 revealed.
     Several members were of the view that, "it was important to make
assessments while taking into consideration the results of the BOJ Tankan and
the reports that would be made at the meeting of general managers of the BOJ's
branches, together with other indicators, and that the BOJ should not have any
preconceptions at this point regarding its assessment."
     However, concerns over the outlook for the price momentum, and the need for
more easing were allayed by the outcome of the Tankan survey, which showed solid
capital investment plans.
     At the September meeting, the BOJ left monetary policy unchanged by a vote
of 7-2, but vowed to re-examine economic and price developments at the next
policy meeting in October.
     "The BOJ will reexamine economic and price developments at the next MPM,
when it updates the outlook for economic activity and prices," the statement
said.
     Other key points from the minutes:
     --"One member expressed the recognition that it was important for the BOJ
to communicate with emphasis that it had not reached an impasse on monetary
policy measures in terms of short- or long-term interest rates, quantity, or
quality, and that any kinds of measures were possible at all times."
     --"A different member noted that, given the lessons of unconventional
monetary policy tools implemented so far at home and abroad, it was important to
communicate widely the effectiveness of policy measures."
     "One member said that, given the concern that the delay in the recovery in
overseas economies would have a negative impact on Japan's economic activity and
prices, it was necessary to consider desirable policy responses while paying
attention to the side effects."
     --"A different member pointed out that there was some possibility that the
momentum toward achieving the price stability target would be lost, and that the
BOJ should examine whether additional easing measures would be necessary."
     --Another member said, "there was relatively large room for monetary easing
among yields in the short- and medium-term zone, and lowering the short-term
policy interest rate was appropriate to additional easing measures."
     TOKYO (MNI) - A few Bank of Japan board members were worried over the risk
that the momentum toward achieving the price stability target will be lost and
the board members saw the need of considering additional easy policy, the
minutes of the September 18-19 policy-setting meeting released on Wednesday
showed.
     "Members shared the view that, while slowdown in overseas economies
continued to be observed and their downside risks seems to be increasing, it was
becoming necessary to pay close attention to the possibility that the momentum
toward achieving the price stability target would be lost," the minutes showed.
     A few members said, "it was important to make assessments while taking into
consideration the results of the BOJ Tankan and the reports that would be made
at the meeting of general managers of the BOJ's branches, together with other
indicators, and that the BOJ should not have any preconceptions at this point
regarding its assessment."
     However, the concern over the outlook for the price momentum and the
necessity of more easing were eased by the outcome of the Tankan, which showed
solid capital investment plans, and of the branch managers' meeting ahead of the
October meeting.
     At the September, the BOJ left monetary policy unchanged, but vowed to
re-examine economic and price developments at the next policy meeting in
October.
     "Slowdown in overseas economies have continued to be observed and their
downside risks seem to be increasing, the BOJ judges that it is becoming
necessary to pay closer attention to the possibility that the momentum toward
achieving the price stability target will be lost," a policy statement said,
following the Board's 7-to-2 vote.
     "The BOJ will reexamine economic and price developments at the next MPM,
when it updates the outlook for economic activity and prices," it added.
     Other key points from the minutes:
     --"One member expressed the recognition that it was important for the BOJ
to communicate with emphasis that it had not reached an impasse on monetary
policy measures in terms of short- or long-term interest rates, quantity, or
quality, and that any kinds of measures were possible at all times."
     --"A different member noted that, given the lessons of unconventional
monetary policy tools implemented so far at home and abroad, it was important to
communicate widely the effectiveness of policy measures."
     "One member said that, given the concern that the delay in the recovery in
overseas economies would have a negative impact on Japan's economic activity and
prices, it was necessary to consider desirable policy responses while paying
attention to the side effects."
     --"A different member pointed out that there was some possibility that the
momentum toward achieving the price stability target would be lost, and that the
BOJ should examine whether additional easing measures would be necessary."
     --Another member said, "there was relatively large room for monetary easing
among yields in the short- and medium-term zone, and lowering the short-term
policy interest rate was appropriate to additional easing measures."
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: MMJBJ$,M$A$$$,M$J$$$]

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