Your current location is:{Current column} >>Text
BOJ board member: Keeping interest rates unchanged is appropriate in current conditions
{Current column}789People have watched
IntroductionBank of Japan Member: Maintaining Current Interest Rates is Appropriate, Inflation Trends Remain a K ...
Bank of Japan Member: Maintaining Current Interest Rates is Tiger ForexAppropriate, Inflation Trends Remain a Key Consideration
The Bank of Japan released the summary of opinions from its monetary policy meeting held on June 16-17 this past Wednesday. In light of the highly uncertain global and domestic economic outlook, several policymakers advocated maintaining the policy interest rate at the current level of 0.5%.
One member explicitly stated, "In such a complex and volatile environment, maintaining policy stability is of great importance." He emphasized that a hasty rate increase could negatively impact economic recovery, particularly as Japan's domestic demand has not fully rebounded amid global trade fluctuations and weak external demand.
Minority Members Open to Rate Hikes if Necessary
While the overall atmosphere leans towards caution, one of the nine members advocated for a gradual move towards monetary normalization, continuing with rate hikes, if the economy develops as expected.
Another member noted that despite the current high level of uncertainty, if inflation levels consistently exceed the target range set by the Bank of Japan, the bank "should not hesitate and must decisively take measures to raise rates." This reflects the lingering concerns some members have about potential price increases.
Bond Buying Strategy Adjustments Are Not a Policy Shift
Although the meeting kept interest rates unchanged, it announced a structural operational change: starting next year, the Bank of Japan will slow the pace of reducing government bond purchases. This measure aims to maintain the stability of the bond market and prevent misinterpretation of future policy directions.
The bank emphasized in the summary that this adjustment "does not signify a shift in policy stance," but rather a "rhythmic optimization at the operational level" to reduce the spillover risks to the overall financial system caused by fluctuations in the super-long-term government bond market.
Inflation Slightly Higher Than Expected But Path Still Unclear
Several members noted during the meeting that the current inflation level is slightly higher than previously predicted. This phenomenon is mainly influenced by rising raw material costs, labor shortages, and higher prices of imported goods. However, they also pointed out that the recent rise in inflation might have some temporary characteristics, requiring further observation to determine whether it will evolve into sustained price pressure.
Therefore, despite the increased focus on prices, the overall decision-makers tend to maintain policy stability until more data becomes available. "The inflation path is not yet fully clear, and rash monetary tightening may be counterproductive," one member stated.
Bond Market Stability Raises Concerns
The summary highlighted that fluctuations in yields of super-long-term government bonds (such as 20-year, 30-year bonds) have affected market liquidity and pricing mechanisms. Members generally agreed that it is crucial to strengthen communication with the market, including providing advance notice of bond purchase operations and stabilizing market expectations, to ensure the healthy operation of Japan's bond market.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
Tags:
Related articles
Bank of England hikes key rate by 25 basis points to 4.5% By
{Current column}-- The increased its key interest rate by another 25 basis points on Thursday, bringing borrowing c ...
Read moreU.S. October PPI rose 2.4%, slightly exceeding expectations, signaling mild inflation pressure.
{Current column}On Thursday evening, Beijing Time, the U.S. Bureau of Labor Statistics released the October Producer ...
Read moreFed Beige Book shows stable economy, easing inflation, and election uncertainty impacting investment
{Current column}The Beige Book released by the Federal Reserve on October 23rd indicates that U.S. economic activity ...
Read more
Popular Articles
- China records world's first human death from H3N8 bird flu
- Fed minutes cool rate cut expectations, gold prices fall for six consecutive days
- Fed cuts rates by 25 basis points to stabilize economy; inflation steady, market reacts positively.
- Thanksgiving spurs U.S. retail peak, boosting e
- Asian stocks muted as markets weigh mixed Chinese trade data By
- Why do expert traders hesitate to discuss market trends and trading strategies?
Latest articles
-
Chinese stocks gain as Biden sees improvement in Sino
-
US dollar strength pressures the yuan; offshore rate nears 7.25, focus on China
-
Expected Swiss Franc Appreciation: Will Rise Even After Three Rate Cuts
-
Mizuho: Visa and Mastercard's U.S. Growth Slows, Debit and Cross
-
Marketmind: Relief rally eyed on US debt ceiling deal By Reuters
-
OpenAI launches the new model o1 with enhanced reasoning abilities