BOJ Policymakers Cautious about Additional Easing

March 20, 2019

Tokyo- Most Bank of Japan policymakers at a monetary policy meeting in January were cautious about additional easing, minutes of the meeting showed Wednesday.

They shared the view that it would be appropriate for the Japanese central bank to tenaciously keep the current easing policy, in the face of growing uncertainty over the course of the global economy, according to the minutes.

At the two-day meeting through Jan. 23, one member of the BOJ's Policy Board said, "Hastily changing policy amid a situation of high uncertainties would instead entail risks of inducing accumulation of financial imbalances and increasing swings in economic activity."

Meanwhile, another member stressed the need to take swift actions including additional easing in response to changes in the situation.

The member also said it would be necessary to "oppose the view that there was a limit to monetary easing," as has been expressed by some people.

BOJ policymakers shared the recognition that downside risks concerning overseas economies were heightening. A few members claimed that "policy coordination with the government would become more important" in case of significant deteriorations in economic and price conditions. Jiji Press