Bank of Japan minutes – BOJ will continue rate hikes if economic & price forecasts met

Bank of Japan September meeting minutes

Full text is here

The Bank was walking a tightrope in this meeting, and these minutes reflect the focus on balancing internal economic recovery with global economic pressures and cautious policy communication.

In summary (the minutes are pages and pages long, so check out that full text link if you want more)

• Rapid decline in market sentiment in August 2024 due to U.S. economic slowdown fears. Japan’s markets particularly volatile due to quick position adjustments.
• U.S. economy’s future remains unclear, affecting global economic stability. Concerns over potential divergence in economic cycles among advanced economies.
• U.S. growth led by private consumption but faces inflation uncertainties; potential risks if high expectations for AI decline.
• On Japan’s economy – Moderate recovery aligned with July 2024 outlook, resilient wage and consumption growth, though impacted by external factors.
• Bank of Japan (BOJ) plans gradual policy rate increases, cautious of overseas economic uncertainties, especially from the U.S.
• Plans to enhance transparency with market participants, emphasizing data-driven decisions over projections to avoid market surprises.

This article was written by Eamonn Sheridan at www.forexlive.com.