BoJ Summary (September assembly) is barely shifting the yen

Bank of Japan (BOJ) “Summary of Opinions” from the September meeting

• One member said the BoJ should continue raising rates if the economy and prices move in line with forecasts.

• One member said there is no change to the view that Japan’s economy will slow temporarily due to U.S. tariffs.

• One member argued the BoJ must support the economy by maintaining low interest rates for now.

• One member suggested it might be good to consider resuming rate hikes, as more than six months have passed since the last move.

• One member warned against raising rates now to avoid surprising markets.

• One member said it would not be too late to await more hard data before proceeding with policy normalisation.

• One member stressed the importance of assessing the impact of trade policy on the global economy, U.S. monetary policy and FX, as well as domestic prices and wages, when setting policy.

• One member said waiting would provide more clarity on the U.S. outlook, but the cost of inflation pressures will gradually rise the longer action is delayed.

• One member noted the economy and prices are on track with forecasts, and if no major deviations occur, policy rates should be adjusted at a regular pace.

• One member said a wide range of new data will soon be available, including the impact of U.S. tariffs, first-half corporate earnings, and the Tankan survey.

Not much here to add to what we already know.

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From the day:

• investingLive European markets wrap: Yen fades BOJ gains; dollar firms, stocks tentative

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The Bank of Japan (BOJ) releases a “Summary of Opinions” after each monetary policy meeting. It serves as a record of the discussion and views of the Policy Board members on various economic and financial issues.

Key points about the Summary:

• The summary includes the views of the Policy Board members on economic conditions, both domestically and globally. This includes assessments of economic growth, inflation, and employment trends, among other indicators.
• The summary also outlines the Policy Board members’ views on the effectiveness of the BOJ’s current monetary policy measures, including interest rate policy, asset purchases, and yield curve control. Members may discuss the pros and cons of these policies and their potential impact on the economy.
• The summary includes discussions on the outlook for monetary policy and the potential risks to the economy. Board members may express their views on the appropriate timing and direction of future policy changes, as well as the potential impact of external factors such as global economic conditions.
• The summary also includes any dissenting views among the Policy Board members. If a member disagrees with the majority view on a particular issue, they may express their own opinion and rationale.

In a few week’s time we’ll get the Minutes of this meeting. The Minutes are a more detailed record of the discussions and decisions made during the meeting.

• The Minutes include a more complete record of the views expressed, including any dissents or alternative opinions that may not be included in the summary.
• The Summary of Opinions is typically released a few days after the policy meeting, while the Minutes are published about a month later. This means that the Summary of Opinions can provide more up-to-date information on the BOJ’s current stance and view on the economy and monetary policy.
• The Summary of Opinions is usually written in a more accessible language, making it easier to understand the BOJ’s views on monetary policy.
• The Minutes, on the other hand, are often more technical and may require a deeper understanding of economics and financial markets.
• The Summary of Opinions is typically shorter than the Minutes.