BoJ Minutes: Will proceed with easing in a continuous manner
FXstreet.com (Barcelona) - The BoJ just published its monetary policy minutes from the meeting held on Sept 18-19, when the bank decided to increase the total size of the Program by about 10 trillion yen, from about 70 trillion yen to about 80 trillion yen through additional purchases of treasury discount bills (T-Bills) by about 5 trillion yen and Japanese government bonds (JGBs) by about 5 trillion yen.
Minutes of the Monetary Policy Meeting - Official BoJ statement
The increased purchases under the Program will be completed by around end-2013. Specifically, additional purchases of T-Bills and JGBs will be completed by around end-June 2013 and around end-2013, respectively. Through these measures, the amount outstanding of the Program will be about 65 trillion yen by around end-2012, about 75 trillion yen by around end-June 2013,
and about 80 trillion yen by around end-2013.
Overseas economies have moved somewhat deeper into a deceleration phase. In global financial markets, while investors' risk aversion on the back of the European debt problem has abated somewhat, particular attention should be given to developments in these markets.
Japan's economy registered relatively high growth in the first half of 2012, supported by the firmness in domestic demand. Nonetheless, the pick-up in economic activity has come to a pause, reflecting the aforementioned developments in overseas
economies. The year-on-year rate of change in the CPI (all items less fresh food) is around 0 percent, while the earlier fall in crude oil prices has been exerting downward pressure. Against the backdrop of these developments, economic activity is expected to level off more or less and the year-on-year rate of change in the CPI to remain at around 0 percent for the time being. Regarding risks, there remains a high degree of uncertainty about the global economy, including the prospects for the European debt problem, the momentum toward recovery for the U.S. economy, and the likelihood of emerging and commodity-exporting economies simultaneously achieving price stability and economic growth. Furthermore, attention should be paid to the effects of financial and foreign exchange market developments on economic activity and prices.
Based on these economic and price developments, the Bank of Japan judged it appropriate to expand the total size of the Program substantially by about 10 trillion yen and take the aforementioned measure to ensure the steady implementation of asset purchases. These measures in pursuit of powerful monetary easing will make financial conditions for such economic entities as firms and households even more accommodative by further encouraging a decline in longer-term market interest rates and a reduction in risk premiums. The Bank expects that, together with the cumulative effects of earlier policy measures, today's decision to enhance monetary easing will ensure the return of Japan's economy to a sustainable growth path with
price stability.
The Bank recognizes that Japan's economy faces the critical challenge of overcoming deflation and returning to a sustainable growth path with price stability. This challenge will be met through efforts by a wide range of economic agents to strengthen
the economy's growth potential and support from the financial side. Based on this recognition, the Bank has been providing support to strengthen the foundations for economic growth and pursuing powerful monetary easing. It will proceed with the
monetary easing in a continuous manner by steadily increasing the amount outstanding of the Asset Purchase Program. The Bank continues to conduct monetary policy in an appropriate manner. The Bank will also do its utmost to ensure the stability of Japan's financial system, while giving particular attention to developments in global financial markets
Minutes of the Monetary Policy Meeting - Official BoJ statement
The increased purchases under the Program will be completed by around end-2013. Specifically, additional purchases of T-Bills and JGBs will be completed by around end-June 2013 and around end-2013, respectively. Through these measures, the amount outstanding of the Program will be about 65 trillion yen by around end-2012, about 75 trillion yen by around end-June 2013,
and about 80 trillion yen by around end-2013.
Overseas economies have moved somewhat deeper into a deceleration phase. In global financial markets, while investors' risk aversion on the back of the European debt problem has abated somewhat, particular attention should be given to developments in these markets.
Japan's economy registered relatively high growth in the first half of 2012, supported by the firmness in domestic demand. Nonetheless, the pick-up in economic activity has come to a pause, reflecting the aforementioned developments in overseas
economies. The year-on-year rate of change in the CPI (all items less fresh food) is around 0 percent, while the earlier fall in crude oil prices has been exerting downward pressure. Against the backdrop of these developments, economic activity is expected to level off more or less and the year-on-year rate of change in the CPI to remain at around 0 percent for the time being. Regarding risks, there remains a high degree of uncertainty about the global economy, including the prospects for the European debt problem, the momentum toward recovery for the U.S. economy, and the likelihood of emerging and commodity-exporting economies simultaneously achieving price stability and economic growth. Furthermore, attention should be paid to the effects of financial and foreign exchange market developments on economic activity and prices.
Based on these economic and price developments, the Bank of Japan judged it appropriate to expand the total size of the Program substantially by about 10 trillion yen and take the aforementioned measure to ensure the steady implementation of asset purchases. These measures in pursuit of powerful monetary easing will make financial conditions for such economic entities as firms and households even more accommodative by further encouraging a decline in longer-term market interest rates and a reduction in risk premiums. The Bank expects that, together with the cumulative effects of earlier policy measures, today's decision to enhance monetary easing will ensure the return of Japan's economy to a sustainable growth path with
price stability.
The Bank recognizes that Japan's economy faces the critical challenge of overcoming deflation and returning to a sustainable growth path with price stability. This challenge will be met through efforts by a wide range of economic agents to strengthen
the economy's growth potential and support from the financial side. Based on this recognition, the Bank has been providing support to strengthen the foundations for economic growth and pursuing powerful monetary easing. It will proceed with the
monetary easing in a continuous manner by steadily increasing the amount outstanding of the Asset Purchase Program. The Bank continues to conduct monetary policy in an appropriate manner. The Bank will also do its utmost to ensure the stability of Japan's financial system, while giving particular attention to developments in global financial markets
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