The Asian session market has seen the publication of a report of the minutes of the Central Bank of Japan (BOJ) meeting that took place on Tuesday recently.
Some Japanese policymakers told that consumer price inflation is seen to tend to increase with widespread price increases for various types of goods.
In fact, some say they need to be vigilant in the face of policy tightening from the Federal Reserve (Fed) as expectations of a rate hike could cause stocks to fall.
However, there are policymakers who see the importance for the central bank to maintain its current monetary policy because price increases in Japan are different from the United States.
The recent rise in inflation has caught the attention of BOJ policymakers some of whom say firms are likely to raise prices more aggressively to consumers.
However, the increase is unlikely to trigger an immediate tightening in the BOJ’s monetary stimulus as inflation is still well below the 2% target and it is largely driven by external factors as opposed to high domestic demand.
At the policy meeting (January 18), the BOJ left interest rates unchanged at -0.1% and maintained the target for 10 -year government bond yields at around 0% at the January session policy meeting.
