Summary of Opinions:

  • The year-on-year rate of change in the consumer price index (CPI) is on a declining trend
  • Japan’s economy has continued its moderate recovery trend
    Inflation expectations have maintained their uptrend in the somewhat longer term
  • The economy is no longer in deflation
  • The negative interest rate policy, in combination with JGB purchases, has pushed down shortand long-term interest rates substantially.
  • The Bank should adopt a new policy framework and implement necessary measures as appropriate.
  • An “inflation-overshooting commitment” and “yield curve control” are consistent with monetary easing measures
  • The Bank does not intend to peg 10-year JGB yields at this level for long in the future
  • The Bank should commit itself to expanding the monetary base until the year-on-year rate of increase in the observed CPI
  • The Bank will have an extremely strong commitment to continuing with monetary easing until the observed CPI inflation exceeds and stays above 2 %

Source: BOJ

Also read: Japan economic events summary