BOJ Minutes - Need to focus solely on 2% inflation target

The Bank of Japan monetary policy meeting minutes released this Wednesday morning in Asia showed the policymakers agreed the price momentum is not firm yet and thus there is a need to focus solely on the 2% inflation target.

Key points

Risks to the economy, prices are to the downside

Downward pressure on yields should increase, so BOJ should reduce JGB, T-bill purchases

Most members agreed price momentum not firm yet, some members noted speculation that the BOJ might raise rates in response to rising Treasury yields

One member said the shape of the yield curve should be a little steeper and said the BOJ should accommodate a rise in yields due to improvements in Japan's economy