Most Central Bank Members Considered That The Scale Of Asset Purchases Should Be Expanded.

The Bank of Japan (BOJ) released a record of its 13-14 day policy meeting on Friday, March 16th. (February). According to the minutes of the meeting, most central bank members considered that the central bank should expand the size of the asset purchase by 10 trillion yen as a result of setting up a price target, so as to maximize the comment effect in its communication strategy.

According to the minutes of the meeting, some members said that the new communication clearly indicated the willingness of the central bank to take further measures when necessary. Members believe that in view of the long-term goal of the FED, it is necessary to discuss the communication problems of the Bank of Japan.

According to the minutes of the meeting, a few members said that setting the price target of the 1-2% interval is an option; one member said that the central bank should actually aim to achieve inflation rate of 2%, but another member thought that the inflation target should not be 2%, because the current situation is different from that of other major countries.

The committee finally agreed that the central bank set 1% inflation target right now, but said that in the longer term, the inflation target should be at 2% or slightly lower.

The minutes also showed that the representative of Japan's finance ministry said that the government was very concerned about the serious risks to the Japanese economy brought by the long-term strengthening of the yen, and hoped that the central bank would continue to take appropriate and decisive monetary policy measures.

At the meeting on 13-14 February, the Bank of Japan unexpectedly expanded the 10 trillion yen asset purchase scale and set a 1% inflation target. This suggests that the central bank will adopt a more aggressive monetary policy to end the deflationary situation that has plagued Japan for more than 10 years.

In the March meeting ended on Tuesday (March 13th), the Bank of Japan kept its policy unchanged, and rejected a committee member's proposal for more stimulus.