Minutes from BoJ’s September meeting reveal a careful stance on monetary policy amid global economic uncertainties. At the meeting, BoJ kept its interest rate steady at 0.25%.
Regarding future direction of monetary policy, members broadly agreed that if Japan’s economic and inflation outlook aligns with their projections, the Bank would “continue to raise the policy interest rate” and gradually adjust its level of monetary accommodation.
The minutes also underscore the need for “high vigilance” given uncertainties in overseas economies, particularly in the US, and ongoing volatility in global financial markets.
Some members pointed out that recent retracements in Yen’s depreciation have moderated upside risk to inflation from import prices. Given this development, they noted that the Bank has “enough time” to evaluate the effects of global economic shifts and recent policy rate hikes before deciding on further moves.
