BOJ Summary: Inflationary pressure likely to remain subdued due to sticky deflationary mindset

As per the latest Bank of Japan’s (BOJ) June meeting summary of opinions, “BOJ has approached time when it needs to show direction on what it can do on climate change via monetary policy.”

Additional comments…

BOJ’s response on climate change must be tied to its mandate of achieving stable economy.

BOJ must make its climate change scheme flexible one.

BOJ can avoid getting directly involved in income distribution by back-financing loans, investment banks make on climate change.

Government representative said BOJ’s plan on climate change is timely.

Japan’s inflation likely to accelerate as pent-up demand begins to appear in latter half of this year.

Japan’s prices likely to lack momentum despite support from rising commodity costs, improvement in demand.

Inflationary pressure likely to remain subdued in japan due to sticky deflationary mindset.