BoJ’s Summary of Opinions: Members see prices and growth developing in line with outlook

Bank of Japan (BoJ) published the Summary of Opinions from its July monetary policy meeting on July 30 and 31, with the key findings noted below.

Key quotes

Several members view economic activity and prices developing in line with the BoJ outlook.

Some see room to raise "significantly low" policy rate, citing negative real rates at 25-year lows.

Opinions divided on timing - some want more data, others ready to move now.

BoJ member expects small hike to have no tightening effect

Member urges timely rate hike to avoid the need for rapid hikes

Members eye on neutral rate of "at least around 1%" as medium-term goal.

Plans to reduce JGB purchases seen as promoting market function, not tightening.

Careful monitoring of JGB market needed as BoJ cuts purchases.

Ongoing debate on the sustainability of inflation/wage growth cycle.

Market reaction

Following the BoJ’s Summary of Opinions, the USD/JPY pair is losing 0.45% on the day to trade at 146.10, as of writing.