21 Jul 2015
BoJ minutes: QQE programme under pressure? – UOB Group
FXStreet (Edinburgh) - Analysts at UOB Group assessed the recent release of the BoJ minutes.
Key Quotes
“The 18/19 June 2015 policy meeting minutes of the Bank of Japan that was released this morning (21 Jul) showed members agreeing the underlying trend in inflation (which was determined by the output gap and mid-to-long term inflation expectations) would continue to improve”.
“But a few members were concerned that the effects of QQE might be wearing off as they considered the rise in long-term rates temporarily to 0.5-0.6% range”.
“That said, some members still viewed the effects of QQE to be substantial given the stable low Japan interest rates despite the rise in interest rates overseas”.
“While the members debated and agreed to cut down the number of MPM meetings from 2016 onwards, the members also maintained the flexibility to call for unscheduled meetings if the economic situation changed significantly”.
Key Quotes
“The 18/19 June 2015 policy meeting minutes of the Bank of Japan that was released this morning (21 Jul) showed members agreeing the underlying trend in inflation (which was determined by the output gap and mid-to-long term inflation expectations) would continue to improve”.
“But a few members were concerned that the effects of QQE might be wearing off as they considered the rise in long-term rates temporarily to 0.5-0.6% range”.
“That said, some members still viewed the effects of QQE to be substantial given the stable low Japan interest rates despite the rise in interest rates overseas”.
“While the members debated and agreed to cut down the number of MPM meetings from 2016 onwards, the members also maintained the flexibility to call for unscheduled meetings if the economic situation changed significantly”.