JP: BoJ MPB Minutes

Wed Nov 04 17:50:00 CST 2015

The Bank of Japan published minutes from its October 6 and 7 monetary policy board meeting. At that time, the MPB kept its policy interest rate range at zero-0.1 percent. It also said it would continue to buy JGBs at an annual pace of ¥80 trillion. The vote to maintain its policy was 8 to 1. Once again, Takahide Kiuchi voted against the decision arguing that a reduced pace of purchases (¥45 trillion) was appropriate.

In the minutes the board said that oil prices continued to impact the timing of when the CPI would reach the 2 percent target. They noted that underlying price trend is expected to improve steadily with prices increasing gradually with wage gains. At the same time the BoJ said that they need higher wages to hit the 2 percent target. Some members thought that the wage increase next spring was important. Some members are watching the effect of higher costs given the weaker yen.

Minutes follow monetary policy board meetings with a four to five week lag. For example, minutes released on June 19 were for the meeting held on May 21 and May 22.

Investors who want a more detailed description of Bank of Japan opinions will generally read the minutes closely. The MPB may issue a statement after its monthly meeting but the minutes will be much more detailed. In particular they will reveal who voted for and against the Committee's decisions and provide a more detailed description of the MPB's thinking. As such, the minutes are a market mover as analysts parse each word looking for clues to future policy.

Once Every 3-4 weeks.