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10 Sep 2013
BoJ minutes: Growing optimism to end deflation; fiscal responsibility main focus
FXstreet.com (Barcelona) - The BoJ Monetary Policy Meeting Minutes from August 7 and 8 came with no surprises, a meeting in which they plead to continue operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.
Many members said credibility on fiscal discipline must be restored to keep interest rates stable, thus hoping the government remains firm to implement planned fiscal reforms. One member even said bond yields may spike and erode effects of BoJ easing if the government doesn't step up efforts on fiscal reform. One member was worried about rise in long term yields.
With regards to inflation, one member also said public inflation expectations are likely to heighten further, with a few more saying Japan CPI expected to rise through summer uptrend. Many members also showed optimism that price levels had been rising across a large range of items.
Many members said credibility on fiscal discipline must be restored to keep interest rates stable, thus hoping the government remains firm to implement planned fiscal reforms. One member even said bond yields may spike and erode effects of BoJ easing if the government doesn't step up efforts on fiscal reform. One member was worried about rise in long term yields.
With regards to inflation, one member also said public inflation expectations are likely to heighten further, with a few more saying Japan CPI expected to rise through summer uptrend. Many members also showed optimism that price levels had been rising across a large range of items.