In the minutes of March BOJ meeting, some members emphasized the need to have the best communications to the markets.
To be more specific:
- “It was important for the BOJ to thoroughly explain to the public … that the economy had not yet reached a phase where it should consider the timing and measures of a so-called exit from monetary easing,”
- “While normalization, or a gradual reduction in the degree of monetary accommodation, could become a topic for consideration in the future, the BOJ needs to explain to markets that normalization … would be different from monetary tightening,”
One member warned of the risk of prolonging ultra loose monetary policy, on financial institutions:
- “There was a risk financial intermediation would be pulled back if the low-yield environment was further prolonged,”
And, one member expressed the concern of weakness in consumption recovery.
