BoJ minutes to shed light on Kiuchi’s proposal

The Bank of Japan (BoJ) will release the 7-8 April meeting minutes on 8 May. The central bank kept quantitative and qualitative monetary easing (QQE) unchanged at the meeting. 

Board Member Takahide Kiuchi proposed a reduction in annual asset purchases to JPY 45tn from the current JPY 80tn. 

He also proposed that the BoJ continue with asset purchases and the virtually zero interest rate in a flexible way and aim to achieve the 2% inflation target in the medium to long term. 

Since the start of QQE, Kiuchi has advocated the use of intensive monetary easing for a period of around two years. His latest proposal is consistent with this stance, as QQE has been in place for two years. This does not reflect the majority view of BoJ board members. And further monetary policy easing will be needed.