BOJ board is divided on policy shift
The Bank of Japan board was divided as for how a policy target shift would back a path toward stable 2% inflation, the summary of views expressed at its September 20-21 gathering issued on Friday showed.
The BOJ made up its mind to add control of the bond yield curve to its quite aggressive monetary easing, which is an attempt to undo some of the adverse effects of its negative interest rate policy, that generated an excessively steep flattening of the curve.
According to Friday's summary, one member told that compared with last framework, the newly introduced policy framework with yield curve control placed at the core is expected to enable Japan’s major financial institution to make more flexible adjustments in compliance with economic, financial developments, prices, and will bolster the overall sustainability of monetary easing. Another member suggested that the outcome requires further explanation
The previous week the BOJ decreased the politically sensitive negative interest rate.