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The minutes of the last Bank of Japan meeting are trickling their way through the worse.

Of note, a few members said that the US dollar was weakening moderately vs yen and that they must be vigilant to market moves, including fx.

More minutes

A few members said dollar weakening moderately vs yen, must be vigilant to market moves including fx.

Members shared view BoJ should ease without hesitation if needed with eye on pandemic development.

A few members said BoJ must analyse effect of its policies to see how it can achieve its inflation target.

Most members said appropriate to examine BoJ’s policy measures on basis it will maintain current policy framework.

Must seek ways to make its ETF buying more flexible as ultra-easy policy is prolonged.

One member said ETF buying is already flexible but worth seeking more ideas.

Must be ready to effectively respond to possible changes to economic, price, financial developments

Must control the shape of yield curve more meticulously as desirable for curve to steepen moderately

Boosting small, medium-sized firms’ profitability via digitalisation is crucial in strengthening japan’s growth potential

The decision to extend the deadline of loan schemes, review operation of its tools is timely

Market implications

The yen could find some additional strength if markets take on the vulnerability at the BoJ which would be forced to intervene if the currency became too strong.