The decision to expand the tolerance for the 10-year JGB yield from 0% +/- 25bp to +/- 50bp was unanimous.
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Headlines via Reuters:
- One member said inappropriate to tweak policy target
- One member said
there could be room to debate how rigidly BOJ should interpret price
target - One member said BOJ
must conduct review of its policy framework at some point in the
future - One member said must
ensure market players are prepared against risk associated with rate
hike, when time for ending BOJ’s easy policy comes - Several members said
effect of powerful monetary easing will continue even if BOJ widens
band around its yield target - One member said BOJ
must humbly look at how much tweak to YCC will help improve market
function - A few members said
BOJ must clearly explain widening of yield band is not a move eyeing
exit from ultra-loose policy - Govt rep said
slowing overseas growth is a risk to Japan’s economy, must scrutinise
impact of rising inflation, supply constraints and market volatility - Govt representative
requested recess during meeting, which chair approved - Govt rep said
“understands today’s debate was about steps to make monetary
easing more sustainable” - Govt rep said hopes
BOJ continues to strive towards achieving price target in stable,
sustainable manner
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USD/JPY is barely moving in response to the release.
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Full text is here:
Minutes of the Monetary policy Meeting on December 19 and 20,
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The Minutes are pre-empted many weeks in advance by the ‘Summary’:
You’ll recall the December meeting and the JGB YCC bombshell that rocked global markets: