In the minutes of September BoJ meeting, “members shared the view that, while slowdowns in overseas economies continued to be observed and their downside risks seemed to be increasing, it was becoming necessary to pay closer attention to the possibility that the momentum toward achieving the price stability target would be lost.”
One member warned “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.”
Another member also urged that BOJ must consider “all possible policy measures without preconception, including cutting the short-term policy interest rate, lowering the target level of 10-year JGB yields, expanding asset purchases, and accelerating the expansion of the monetary base”
Also, it’s noted noted that “there was relatively large room for monetary easing among yields in the short- to medium-term zone, and lowering the short-term policy interest rate was deemed appropriate.”
