BoJ Minutes: Japan Economy Continues To Improve

Members of the Bank of Japan's Monetary Policy Board said that the country's economy is headed in the right direction, minutes from the board's April 27 and 28 policy meeting revealed on Wednesday - although the upside continues to be limited by lingering COVID-19 cases.

Exports and industrial production continue to strengthen, the minutes said, although employment and overall income remain weak.

The members also noted that inflation expectations have risen, mainly due to recent spikes in commodity prices. The board agreed that it would maintain accommodative policy as long as necessary to achieve the 2 percent inflation target.

At the meeting, the BoJ maintained its massive stimulus and guidance of ultra-low interest rates at -0.1 percent and raised the inflation forecast. The bank also committed to conduct fixed rate auctions every business day to defend its 0.25 percent yield target and it will continue to purchase Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

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