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
(Market News Provided by FXstreet)