BOJ Meeting Summary – policy sustainability could be an issue next year

The ‘summary of the opinions’  of the Bank of Japan (BOJ) April monetary policy meeting released this Wednesday morning showed the need to maintain current accomodative policy due to downside risks from overseas, although policymakers believe the sustainability of the policy could be an issue next year if the BOJ purchases are not trimmed.

Key points

Expect labour shortages to lead to higher wages, which will push up inflation expectations

Economy recovery may not spread to consumer spending due to ageing society

Virtuous cycle in economy will get firmer, vital to adhere to current powerful easing