The minutes also showed that members of the BOJ’s policy board shared recognition that risks to Japan’s economic activity and prices were “skewed to the downside.” In the Jan. 30-31 meeting, the board members decided to maintain the central bank’s monetary policy, including the target of guiding 10-year Japanese government bond yields to around zero pct.

Some policymakers said monetary policy decisions “should be made solely based on the viewpoint of aiming to achieve the (BOJ’s) 2 pct price stability target,” although there was speculation that the BOJ might raise the long-term rate target in response to higher US interest rates.

In the meeting, members agreed economic growth in fiscal 2016-2018 would be “somewhat higher” than their projections presented in the quarterly Outlook for Economic Activity and Prices report in October 2016.

In line with the view, the BOJ board revised up its real gross domestic projections for the three years in its latest quarterly report, published after the meeting. (Jiji Press)