The Bank of Japan's June meeting Summary of Opinions has been released and the following are some of the key points.
- BoJ must maintain easy policy, keep close eye out on market, fx impact on economy, prices.
- Number of goods seeing prices rise is increasing due to rising raw material costs and weak yen, but appropriate to keep easy monetary policy as inflation not driven by positive economic cycle.
- Maintaining ultra-easy policy is effective in achieving sustained rise in wages.
- Must heighten households' purchasing power, inflation expectations to achieve boj's price goal in steady manner.
- Sharp yen fall would hurt economy, heighten uncertainty.
- Exports, output under stronger downward pressure than seen in april due to supply constraints caused by china's lockdowns.
- Will likely take time for shanghai's economic activity to normalise, worried about risk of China's slowdown, prolonged global supply constraints.
This report includes the BOJ's projection for inflation and economic growth. It is scheduled 8 times per year, about 10 days after the Monetary Policy Statement is released.
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