In the Summary of Opinions at the June 16-17 meeting, BoJ noted, “in order to achieve the price stability target, accompanied by wage increases, in a sustainable and stable manner, the Bank needs to conduct monetary easing while examining economic and financial developments, for which uncertainties have been extremely high.”
While price increases has “broadened”, “it cannot be said that the price stability target has been achieved amid a virtuous cycle.” Output gap remained “negative for more than two year”, Japan has not reached a situation to “accelerate a rise in wages”. It is “necessary” to “persistently continue with monetary easing and thereby support the economy.”
There was no discussion on tweaking the 0.25% cap on 10-year JGB yield.
