At the BOJ's monetary policy meeting, board members expressed views on price trends, the timing of rate hikes and a review of the pace of ETF sales. The influence of the government's views was also discussed.
The BOJ released the main opinions from its October monetary policy meeting. Among the points highlighted was the view that, amid expanding global demand for AI, upward pressure on prices and a shift in the global rate-hike cycle, Japan's economy was gradually being freed from the norm of its long-standing deflation and undergoing a regime shift toward greater integration with overseas economies.
Views were expressed that year-on-year growth in actual consumer prices, excluding fresh food and special factors, had risen above 3%.
Some members said the next rate hike should be implemented when possible without being excessively cautious. There was also a shared view that underlying inflation had reached 2% and that the policy rate should be brought to the neutral rate quickly. Members also said that financial conditions should be reviewed every three months and the degree of monetary easing adjusted steadily.
Some members questioned whether it was an appropriate time to review the pace of ETF sales, but the decision this time is viewed as reflecting the government's intentions regarding a review of the sales pace. Statements from the Cabinet Office were at times emphasized as representing the government's views.
Other points raised included coordination between the government and the BOJ, the view that Japan's economy was at a crossroads as to whether it could embark on a virtuous cycle, and expectations for monetary policy management aimed at the sustainable and stable achievement of the 2% price stability target.