Dated BOJ Minutes Show Heated Discussion Over Policy Disclosure

Bank of Japan (BOJ) officials contested how much information they should disclose to the public about a possible exit from ultra-loose monetary policy, the minutes from the bank’s June 15-16 minutes showed Tuesday.

Several committee members expressed the belief that providing information on a potential exit from quantitative easing could cause turbulence in the financial markets. Some members also said that the BOJ must clearly explain how it would manage any deviation from its current path.

Japan’s central bank shifted its policy focus last September from base-money targeting to yield-curve target as it became clear that the existing program wasn’t bringing about desired inflation and economic growth. The Japanese economy has improved markedly since then, but remains well below the BOJ’s targets.

Policymakers noted in the June meeting that inflation remains well below the 2% target. Core inflation rose in May for a fifth consecutive month, government data showed.

The BOJ kept policy on hold in June and made no further moves at its most recent meeting earlier this month. The central bank began its quantitative easing campaign in 2013 shortly after Prime Minister Shinzo Abe entered office.

Abe’s pro-growth policies are centered on “three arrows” of monetary easing, fiscal stimulus and structural reforms.

Sam Bourgi is a financial market analyst for He has more than six years of progressive experience in economic and financial analysis, research consulting and sectoral analysis. As a published author in government, peer-reviewed, online and industry sources, he has developed a fundamental approach to the financial markets with a broad focus on stock indices, commodities and the technology sector. He earned his Bachelor’s Degree from the University of Windsor and Master’s degree from McMaster University.