According to the minutes of the Bank of Japan’s April meeting, members agreed that Japan’s economy is expected to revive in the near future.
A few participants stated that a positive cycle in which growing income leads to increased expenditure is gradually kicking in.
Members agreed that the impact of lower mobile fees on inflation would be transient.
A few members predicted that an increase in inflation would be weak.
One member stated that corporate funding conditions remain difficult for service-sector businesses, which could lead to an increase in solvency risks.
One member stated that any signs of a rise in the number of people filing for bankruptcy should be taken seriously.
Members agreed that the speed of vaccine inoculation is slow and that its impact is unknown, which could stifle economic growth.
Members agreed that advanced countries’ stimulus measures may hasten the recovery of Japan’s and the world’s economies.
Members agreed that the Bank of Japan’s projection that Japan’s growth potential and financial intermediation will not be harmed by pandemic fallout was uncertain.
On the minutes, there has been no reaction to the yen.
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