Sage Investment Club

The decision to expand the tolerance for the 10-year JGB yield from 0% +/- 25bp to +/- 50bp was unanimous.

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
  • One member said BOJ
    must conduct review of its policy framework at some point in the
  • 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
  • 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

USD/JPY is barely moving in response to the release.

Full text is here:

Minutes of the Monetary policy Meeting on December 19 and 20,

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:

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