BoJ Minutes: To keep sustaining Yield Curve Control to support wage growth

The Bank of Japan (BoJ) Board members shared their views on monetary policy outlook and Yield Curve Control (YCC), per the BoJ Minutes of the October meeting.

Key quotes

“Members agreed need to patiently maintain the current easy policy.”

“Several members said must sustain YCC to continue supporting wage growth.”

“Another member said must confirm wage, inflation cycle in determining whether sustained achievement of price goal can be eyed.”

“One member said the chance of Japan achieving sustained 2% inflation heightening, BOJ must gradually adjust the degree of monetary easing.”

“Several members said Japan's price developments might become a factor pushing up long-term interest rates.”

“One member said 10-year JGB yield may reach 1% depending on US Treasury market, domestic price developments.”

“Many members said side-effects on markets, corporate funding could become large if the BOJ keeps tight control on JGB yield.”

“Several members said making YCC flexible would help diminish speculative moves in the market, make the framework more sustainable.”

Market reaction

Following the BoJ Minutes, USD/JPY was down 0.11% on the day at 142.07