Summary of opinions of BoJ’s October 30-31 meeting noted that “inflation momentum has not been lost” and thus, the central should “maintain the current easing policy”. However, it was appropriate to “clarify” that the policy stance is “further tilted toward monetary accommodation”, by indicating the “downward bias” in policy rates.
Also, in the current situation where risks are skewed to the downside, the Bank should continue to examine whether additional monetary easing will be necessary”. As inflation expectations are “not anchored” to 2% target and observed inflation rate is “far from the target”, BoJ should “seriously prepare for the next economic downturn as one of the risk scenarios.
