The post BoJ Minutes: If inflation trends align with expectations, gradual rate hikes possible appeared on BitcoinEthereumNews.com.

The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Tuesday, per the BoJ Minutes of the October meeting.   Key quotes The policy interest rate remained at 0.25%. The board member emphasized a cautious approach to monetary policy amid domestic and global uncertainties. If inflation trends align with expectations, gradual rate hikes are possible, with a potential path to 1.0% by late fiscal 2025. BoJ member suggests a gradual rate hike to 1.0% by the second half of fiscal 2025 for better economic assessment.  The board member shares view the BoJ will continue raising rates if the economy and prices move in line with the forecast.  Member suggests gradual rate rises if inflation accelerates as projected.  Member suggests market rates may be lower than appropriate levels based on economic and price projections, as well as monetary policy guidance.  Member cites difficulty in predicting rate hike path due to uncertainty over Japan’s neutral rate and monetary policy transmission mechanism.  MOF representative said the government will guide economic and fiscal policy, prioritizing pulling Japan out of deflation, and hopes. BoJ continues to guide policy appropriately in close coordination with the government. Members agreed Japan’s consumption is likely to continue increasing moderately. A few members said wage growth is likely to remain elevated in next year’s spring wage negotiations. Market reaction to the BoJ Minutes At the time of writing, USD/JPY was up 0.03% on the day at 157.18. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and…

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Filed under: News - @ December 24, 2024 12:26 am