BoJ summary of opinions for the June meeting
What inflation rate is the BOJ targeting?
The Bank of Japan (BOJ) is targeting an inflation rate of 2%. This is considered a sustainable and stable level for the economy.
How does BOJ view current consumption and economic momentum?
The Bank of Japan (BOJ) views current consumption as lacking momentum, with some disruption to auto shipments. The central bank is closely monitoring the situation and considering further adjustments to monetary policy accommodation to address potential upside risks to inflation.
Why is BOJ considering a reduction in bond purchasing?
The Bank of Japan (BOJ) is considering reducing bond purchases as a signal of monetary tightening, while leaving its policy interest rate unchanged4. This move aims to eventually reduce its accumulated holdings on its balance sheet, a process known as quantitative tightening. The decision comes as the wide interest rate gap between Japan and the United States, a major factor behind the yen's depreciation against the dollar, is likely to persist.