The Bank of Japan (BoJ) Board members shared their views on monetary policy outlook on Thursday, per the BoJ Minutes of the March meeting.

Key quotes

“One member said impact of rise in short-term rate to around 0.1% on economy will likely be limited.”

“Many members shared view long-term rates should basically be set by markets.”

“A few members said the BOJ should at some point in the future reduce bond buying amount, shrink its bond holdings.”

“A few members said BOJ March move is different from the monetary tightening phase experienced in US, Europe.”

“One member said BOJ should slowly but steadily move towards policy normalisation with an eye on economic, price developments.”

“A few members said while not a big risk now, there is chance of overshoot in Japan's inflation.”

“Expects BoJ to continue aiming for achievement of 2% inflation target in stable, sustained manner.”

“Qhile wages, capex showing positive movements, consumption lacking strength, overseas risks exist.”

“The government shares the BoJ's view that positive wage-inflation cycle is emerging.”

“BoJ must continue to support the economy for a financial standpoint to achieve sustained, domestic demenad-drive economic recovery