BoJ has reaffirmed its commitment to continuing with its current monetary easing policy, including yield curve control, to achieve the price stability target, according to the minutes of its meeting in January 17-18.

One member noted that there is “still a long way to go to achieve the price stability target”, and thus the Bank should continue with the current monetary easing to firmly support the economy.

To encourage firms’ efforts with regard to business transformation until sustained wage increases can be expected, the Bank needs to “curb interest rate rises across the entire yield curve” while paying attention to the functioning of bond markets, according to another member.

Another member added that it was “inappropriate to rush to an exit” from the current monetary policy, as overseas economies were currently heading toward slowdowns.

However, one member recognized that “at some point in the future”, it will be necessary to examine and assess the balance between the positive effects and side effects of the current monetary easing policy.

The Bank’s “basic stance on its future conduct of monetary policy” is to “continue with the current monetary easing — including the conduct of yield curve control — and thereby achieve the price stability target in a sustainable and stable manner accompanied by wage increases,” the minutes read.

Full minutes here.

BoJ Governor Haruhiko Kuroda spoke to the parliament today and hailed that the government has made significant progress on fiscal reforms. And, there is “some lagbefore the steps already taken begin to affect the economy”.

But he also emphasized that there are “still some steps remaining that the government needs to take on structural reform and growth strategy.”

In the latest Regional Economic Report, BoJ downgraded the assessments of three regions, Hokuriku, Tokai and Chugoku. Nevertheless, all nine regions reported that “their economy had been either expanding or recovering.”

“The background to this was that domestic demand, in terms of such items as business fixed investment and private consumption, had continued on an uptrend, with a virtuous cycle from income to spending operating in both the corporate and household sectors, although exports, production, and business sentiment had shown some weakness, mainly affected by the slowdown in overseas economies and natural disasters.”

Earlier today, BoJ Governor Haruhiko Kuroda reiterated that “we will adjust policy as necessary to maintain momentum toward our price stability target while examining risks… We will not hesitate to take additional easing steps if risks heighten to an extent that the momentum toward the price target is undermined.”

Full report here.