Following are the highlights of the BOJ meeting held on July 19 and 20:
- Many members agreed that inflation expectations were no longer falling.
- Companies gradually moved towards raising wages.
- The Bank of Japan will continue in current expansionary policy by maintaining the monetary easing program with negative rates and controlling the yield curve.
- Current monetary Policy supports the attainment of the desired objectives.
- One member pointed out that the inflation target of 2% is against the bank's flexible policy.
- One member noted that the 2% target would make it difficult to adjust monetary policy.
- A few members saw the need to unemployment and the output gap to fall for pushing inflation to target of 2%.
- Japan's Nikkei is trading near 20,000 levels as the currency depreciates.
- The depreciation of the yen against the US dollar is due to the differential interest rates between the two countries.
- Developed economies experienced a moderate growth in the past period.
- The world economy has improved in modest pace recently.
- The US economy has recovered significantly.
- The Japanese economy continues to grow at a moderate pace.
- Exports rebounded led by improving emerging economies.
- Inflation expectations remain weak.
- Many members expressed concern about the financial situation in Japan.
