BoJ minutes: It was appropriate to take additional steps to forestall risks

By FXStreet Minutes of the January Bank of Japan meeting, when the decision to set negative rates was made, have been published. Find the main headlines below.

Headlines

Most members said there is heightening risk that global market volatility could hurt business sentiment, delay shift from deflationary mindset

Many members said it was appropriate to take additional steps to forestall risks

A few members said while global market risks are titled to downside, domestic economy, prices had not worsened enough to warrant immediate action

One of these members said given that highly accommodative financial conditions had been maintained, additional easing measures were not warranted

One member said now was defining moment for japan’s economy to maintain momentum so as not to halt the virtuous cycle, and that the bank should reinforce qqe

BOJ staff offered 2 options, one to expand qqe, another to adopt qqe with negative interest rate

Many members said qqe with negative interest rate would enable the bank to take additional monetary easing measures in three dimensions

One member said boj had enough knowledge about effects, operational issues on negative rates in light of experiences in some european countries

One member said complex nature of framework proposed at this meeting could cause confusion and anxiety in markets
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Source:: FX Street