The Bank of Japan board members said they may need to consider interest rate hike on the back of improving economic activity and prices going forward, according to the Summary of Opinions.
“When it is expected that economic activity and prices will continue to improve going forward, the situation may occur where the Bank will need to consider whether adjustments in the level of interest rates will be necessary,” one board member said at the monetary policy meeting held last week.
With regard to purchases of risky assets including exchange-traded funds, one member said as stock prices and corporate profits are expected to continue to develop firmly going forward, their policy effects as well as possible side effects should be examined from every angle.
At the meeting, the board voted 8-1 to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion. They decided to buy government bonds so that the yield of 10-year JGBs will remain at around zero percent.
The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.
The material has been provided by InstaForex Company – www.instaforex.com
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