BoJ minutes: Underlying trend in inflation to improve

FXStreet (Bali) - The Minutes of the Bank of Japan from the June 18/19 monetary policy meeting have been published, with Kuroda and the majority of members maintaining their stance that QQE will continue until 2% inflation is stable, while adding that underlying trend in inflation would continue to improve.

Key headlines - via Reuters

Members agreed underlying trend in inflation, which was determined by the output gap and medium- to long-term inflation expectations, would continue to improve

A few members said effects of QQE might be diminishing, considering long-term interest rates had temporarily risen to the range of 0.5-0.6 percent

Some members noted effects of QQE continued to be substantial, given interest rates in Japan had been stable at low levels despite rise in overseas interest rates

One member said developments in cpi had not shown any remarkable shift in price situation

Members debated cutting number of policy meetings from next year, agreed boj would, as in past, respond flexibly by calling unscheduled meetings if economic situation changed significantly

MOF representative said govt expected such initiatives by boj would further enhance deliberations on monetary policy at rate reviews