JEQ - December meeting summary: Members of BOJ called for debate on future exit from easy policy

2023-12-27 01:54:35 ET

• Bank of Japan board members saw the need to maintain ultra-easy monetary policy for now, with some calling for a deeper debate on a future exit from massive stimulus, a summary of opinions at the central bank’s Dec 18-19 meeting showed.

• “To avoid the risk of high prices damaging consumption and undermining the chance of achieving our price target, we should not miss the opportunity to normalize monetary policy,” the opinion said.

• Some members expressed their belief that there is no need to hurry in implementing this change.

• Despite some views indicating progress in reaching the 2% goal, there is still concern over potential consequences if the bank has to abruptly implement stricter policies. As a result, observers of the Bank of Japan will likely continue to closely monitor for any unexpected developments.

• "It's better to be quick and effective than slow and detailed," noted one committee member, emphasizing the importance of not making rushed decisions.

• In addition, another member highlighted the momentum in wage increases, stating that it is stronger compared to last year. This suggests a sense of positivity and hopefulness for the achievement of a positive cycle between wages and prices.

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