In the Summary of Opinions at BoJ’s October 27-28 meeting, it’s noted that it’s wages increase in a “sustainable and stable manner” to achieve the inflation target. Inflation could “deviate upward” form the baseline scenario but it’s still “uncertain” whether the rises in prices will be “sustainable”. It is “undesirable” to “make premature changes” to monetary policy for the “risk of disrupting the formation of a virtuous cycle between prices and wages.”
Nevertheless, on member noted, “it is necessary to examine the impact of high prices on household behavior and wages humbly and without any preconceptions while paying attention to the side effects of monetary easing.
Another member noted, “it is also important to continue to examine how future exit strategies will affect the market and whether market participants will be well prepared for them.”