BOJ Minutes: Inflation Risks Outweigh Growth Concerns as Rate Hike Supported

MT Newswires Live
Aug 05

Bank of Japan policymakers agreed at their June 15-16 meeting that moderate economic growth would continue, supported by strong corporate profits, wage growth, and energy subsidies, though growth is expected to decelerate due to Middle East-driven oil price hikes.

Members prioritized upside inflation risks over growth concerns, supporting a 25-basis-point rate hike to 1.0%, according to the minutes released Wednesday.

Inflation is projected to accelerate "clearly above 2%" as higher crude oil prices are expected to push prices up.

The minutes also showed broad support for continuing reductions in Japanese government bond purchases through March 2027 before maintaining monthly purchases at about 2 trillion yen from April 2027 to preserve market functioning.

One member dissented, arguing the BOJ should continue reducing bond purchases beyond that date.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10