By Leika Kihara
TOKYO (Reuters) – Some Financial institution of Japan policymakers warned that rising import costs from a weak yen had been hurting shopper sentiment and heightening the danger of an inflation overshoot, minutes of the central financial institution’s June 13-14 coverage assembly confirmed on Monday.
“Members agreed that the yen’s recent falls were among factors that push up inflation, and must warrant close attention in guiding monetary policy,” the minutes confirmed.
One board member mentioned the price of leaving inflationary dangers unattended was heightening as firms had grow to be extra eager to move on rising prices than earlier than, the minutes confirmed.
Just a few within the nine-member board mentioned the BOJ should think about elevating rates of interest from the angle of stopping future dangers of an inflation overshoot.
“One member said the BOJ must continue to closely monitor relevant data in preparation for the next meeting in July and, if deemed appropriate, raise interest rates without delay,” in keeping with the minutes.
The discussions underscore how the yen’s declines had been amongst key elements that had been mentioned on the BOJ’s June assembly, and led to its choice in July to lift rates of interest.
The BOJ saved rates of interest regular in June however determined to put out a plan on the July assembly for bond tapering over the approaching one to 2 years.
