BoJ’s Summary of Opinions from its October 30-31 reiterated its “basic thinking” that it will adjust the degree of monetary accommodation if the outlook for economic activity and prices unfolds as expected. Emphasizing the importance of “communicating effectively” this core message, BoJ aims to manage market expectations carefully.
One member indicated that if economic conditions progress as anticipated, BoJ could “raise the policy interest rate gradually,” reaching 1.0% in the second half of fiscal 2025 at the earliest.
Conversely, another member expressed caution, noting the difficulty in confidently conveying a medium-term policy rate path due to “high uncertainties” surrounding the neutral interest rate and the transmission mechanism of monetary policy.
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