27 Jan 2014
BoJ minutes: Positive econ cycle to be undisturbed by sales tax hike
FXstreet.com (Bali) - According to the minutes from the Bank of Japan (BOJ) from December 19-20 meeting, some members highlighted economic concerns, although most still agreed that the positive economic cycle will remain intact after the sales tax hike.
Other members daid there is a need to explain that the impact of the sales tax is factored into the BOJ’s base scenario. On QE, members agreed that QE is becoming more effective, helping boost corporate and household spending, which is critical to create sustainable inflation, along with wage raises. With regards to CPI projections, many members agreed that the CPI shows prices rising for a broad range of goods, adding that a cheap yen will push up process but gains likely slow.
Other members daid there is a need to explain that the impact of the sales tax is factored into the BOJ’s base scenario. On QE, members agreed that QE is becoming more effective, helping boost corporate and household spending, which is critical to create sustainable inflation, along with wage raises. With regards to CPI projections, many members agreed that the CPI shows prices rising for a broad range of goods, adding that a cheap yen will push up process but gains likely slow.