BOJ April Meeting Recap – “Yen Depreciation Works Positively”


  • Bank of Japan “Summary of Views” from April 2022 Policy Meeting

Eamonn Sheridan

Wednesday 05/11/2022 | 23:50 GMT-0

05/11/2022 | 23:50 GMT-0

Summary from the Bank of Japan, headlines via Reuters:

  • weak yen is positive for the economy while the output gap is still large, trend inflation
  • must be alert to the possibility of an unexpected tail risk triggered by the Ukrainian crisis
  • Japan’s non-energy inflation remains very low, different situation from the United States and Europe
  • Consumer inflation in Japan is expected to hover around 2% for now from April, but price increases above 2% won’t be sustainable
  • difficult to meet the BOJ’s 2% inflation target as the expected rise in inflation is due to temporary factors
  • it is crucial that the wage increases, currently seen by large companies, trickle down to smaller companies so that wages and inflation increase in a sustainable way
  • there is a risk that prices will come under downward pressure if medium to long-term inflation expectations do not rise sufficiently
  • the Bank of Japan continues to support the economy with its current strong monetary easing

Full text here

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The April meeting was marked by Kuroda dismissing criticism of the weak yen and the BOJ’s easy policies.

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