BoJ Minutes: Economic Recovery Is Still On Track



Members of the Bank of Japan's monetary policy board said that the country's economic recovery continues to grow at a satisfactory pace, minutes from the board's June 18-19 meeting revealed on Tuesday. The recovery is expected to continue, the board said, although downside risks include the European debt situation and the state of commodity exporters. "Japan's economy has continued to recover moderately. Overseas economies - mainly advanced economies -- have been recovering, albeit with a lackluster performance still seen in part," the minutes said. In the battle against deflation, the board said that consumer prices figure to be roughly flat due to falling energy prices. "Inflation expectations appear to be rising on the whole from a somewhat longer-term perspective," the bank said. At the meeting, the bank decided to hold its benchmark lending rate steady at 0.10 percent, and also to maintain its target of raising the monetary base at an annual pace of about 80 trillion yen. The bank also announced plans to reduce monetary policy meetings from 2016, down to eight from the current 14. In addition, it would raise the frequency of its economic outlook reports. Accordingly, it will publish forecasts for the economy and prices on a quarterly basis instead of twice yearly. In terms of economic data, exports have been picking up and steady improvement in the employment and income situation support private consumption. "Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner," the bank said.

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