In the minutes of December 19/20 BoJ monetary policy meeting, most members shared that “although it would take time to achieve the 2 percent price stability target, it was appropriate to persistently continue with the powerful easing under the current guideline for market operations as the momentum toward achieving 2 percent inflation was being maintained”.
Regarding Japan’s economic outlook, members “concurred that it was likely to continue its moderate expansion”. And they “shared the recognition that domestic demand was likely to follow an uptrend”. However, one member warned that “exports, including those to China, had been weak as a whole”. Another member pointed to “increasing number of firms held cautious views, mainly against the background of the prolonged US-China trade friction”.
On prices, members shared the recognition that “CPI continued to show relatively weak developments compared to the economic expansion and the labor market tightening”. But most agreed that CPI was “likely to increase gradually toward 2 percent”.
