Split on the Bank of Japan (BOJ) board

Author: Eamonn Sheridan | Category: Central Banks

Author: Eamonn Sheridan

That BOJ board members have divergent views on the Japanese economy is not news, we’ve seen it growing, most recently after the release of the October minutes, and again in the November minutes released yesterday.

In the minutes of the November meeting we see:

  • Board members are divided over the interpretation of a third-quarter slowdown; one expressed concerns the growth trend may have shifted downward after fast expansion earlier in the year
  • The slowdown in growth raised questions about whether the economy can withstand the sales-tax rise planned for April 2014
  • One member of the board noted “unfavorable developments” in the GDP data, citing the build-up of inventory & drop in employee compensation (on the other hand, though, not to focus too much on what one or two members thought, “many members,” said economic activity “continued to show positive movement, particularly domestic demand”

There are more details at this (ungated) Wall Street Journal article.

Economists expect the BOJ to add stiulus measures (more easing) after April 2014, one former member of the BOJ board, Atushi Mizuno has said that they may hold off expanding monetary stimulus until late into 2014.

LON GMT+1
BJ HK+8
NY EST-4
TYO +9

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