The members of the Bank of Japan's monetary policy board reiterated their dedication to end the deflationary pressures that has plagued the country for 15 years, minutes from the bank's meeting on June 10 and 11 revealed on Wednesday.
Japan's economy is expected to return to a moderate recovery path, the members said - but they cautioned that there remains a high degree of uncertainty.
"The Bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate," the minutes said.
At the meeting, the BoJ decided to retain its target of doubling the monetary base in two years, but stopped short of announcing any new steps to curb bond market volatility.
Meanwhile, the central bank upgraded its view of the economy. It also kept the nation's benchmark interest rate at the record low 0 to 0.10 percent.
"Japan's economy is expected to return to a moderate recovery path, mainly against the background that domestic demand increases its resilience due to the effects of monetary easing as well as various economic measures, and that growth rates of overseas economies gradually pick up, albeit moderately," the minutes said.
The BoJ said its money market operations will continue to target an expansion of monetary base at an annual pace of JPY 60-70 trillion, as announced in April. The decision to keep the easing plan intact was unanimous.
The bank forecasts the year-on-year rate of change of the consumer price index to gradually turn positive. The BoJ aims to achieve 2 percent inflation in two years.
"On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) has been negative, due to the reversal of the previous year's movements in energy-related and durable consumer goods. Some indicators suggest a rise in inflation expectations," the minutes said.
At the meeting, board member Takahide Kiuchi once again raised objection to the central bank's two-year time frame to achieve the 2 percent inflation target.
Kiuchi proposed that the bank should aim to achieve the price stability target "in the medium to long term" and "designate quantitative and qualitative monetary easing as an intensive measure with a time frame of about two years." This proposal was defeated by 8-1 in the nine-member board.
"Such conduct of monetary policy will support the positive movements in economic activity and financial markets, contribute to a rise in inflation expectations, and lead Japan's economy to overcome the deflation that has lasted for nearly 15 years," the minutes said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.