BOJ focused on wages, yen at June meeting, no debate on tweaking yield cap

(Recasts with BOJ board member quotes, details)

By Leika Kihara

TOKYO, June 27 (Reuters) - Many Bank of Japan (BOJ) policymakers saw stronger wage growth as key to sustaining the bank's 2% inflation goal, according to a summary of opinions expressed at a June meeting, underscoring their resolve to maintain ultra-low interest rates.

The summary of views voiced at the bank's June 16-17 rate-setting meeting, published on Monday, showed one board member said sharp yen falls could hurt the economy by making it difficult for companies to set business plans, highlighting policymakers' concern over the currency's plunge to 24-year lows.

At the meeting, the BOJ stuck to its ultra-low interest rate policy and vowed to defend its cap on the 10-year bond yield with unlimited buying, bucking a global wave of monetary tightening in a show of resolve to focus on supporting a tepid economic recovery.

There was no trace in the summary - in which commenters are not identified by name - of any discussion by the BOJ board of raising interest rates to slow the pace of yen declines, with many stressing the importance of keeping monetary policy ultra-loose.

"A growing number of goods are seeing prices rise due to higher commodity costs and currency volatility. But it's appropriate to maintain current monetary policy" as the price gains aren't driven by strong demand, one member said.

According to another opinion expressed, "In order to achieve sustained wage hikes that can drive up demand, the BOJ must sustain its current monetary policy and underpin the economy."

Several other commenters pointed to the need to stimulate the economy long enough to boost wage growth, which remains far more subdued in Japan than in other countries, the summary showed.

The growing policy divergence on interest rates between Japan and the rest of the world - where rate hike cycles are well under way - has pushed the yen JPY= to 24-year lows against the U.S. dollar, threatening to cool consumption by boosting already rising import costs.

Some market players had speculated the BOJ could give into market forces and tweak its yield cap policy in June, to allow Japan's long-term interest rates to rise more.
Reporting by Leika Kihara; Editing by Shri Navaratnam and Kenneth Maxwell

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。