Bank of Japan Minutes Show Dissent Over Stimulus

by Takashi Nakamichi
Market Watch

TOKYO – Bank of Japan officials clashed over the need to modify stimulus measures in June, a discussion summary showed Wednesday, as tensions grow over the central bank’s ever-looser policy and its diminishing returns.

The internal debate conveyed by the minutes of a July 15-16 policy meeting could add to speculation over possible changes to the central bank’s policy framework in the coming months.

During the meeting, where the BOJ stood pat on policy, one of the nine board members called for reducing the central bank’s program of purchasing Japanese government bonds to “more sustainable” levels before major problems occur, according to the meeting minutes. The BOJ has bought JGBs at an annual pace of 80 trillion yen since late 2014.

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