BoJ Minutes: Japan Economy Picking Up Steam

Members of the Bank of Japan's Monetary Policy Board agree that the country's economy is trending higher as the effects of COVID-19 wane, minutes from the bank's meeting on July 20 and 21 revealed on Wednesday.

Exports are on the upswing, but they're hampered by supply-side constraints, the minutes showed, while industrial production are on a downward trend for the same reason.

Global economic sentiment is cautious due to uncertainties such as the ongoing conflict in Ukraine, as well as recession fears in the face of interest rate hikes from a number of central banks.

In contrast, the BoJ called the current level of easing appropriate and the members said it should continue as long as necessary to achieve price stability at 2 percent.

At the meeting, the BoJ voted 8-1 to maintain a negative interest rate of -0.1 percent on current accounts that financial institutions maintain at the central bank. The bank will also continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

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