The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Monday, per the BoJ Minutes of the July meeting.   

Key quotes

Members agreed financial conditions remain accommodative. 

Some members note consumer prices rising, reflecting increased import costs. 

Several members noted companies steadily pass rising raw material costs, sustaining high wholesale inflation. 

Many members say medium-, long-term inflation expectations rising for households, companies. 

Several members expect consumer goods price increases to expand from summer onward. 

Many members noted underlying inflation nearing 2%, demanding focus on stability. 

Many members said underlying inflation nearing 2%, requiring focus on stabilising price growth around that level. 

Members concur fx volatility impacts economy, prices more than before as firms increase pass-through of rising import costs. 

One member notes rising upside price risks as recent weak yen, Middle East events could boost inflation expectations. 

One member noted it takes 1-1.5 years for rate hike effect to ease inflation, economy. 

One member said Bank of Japan must taper monetary support gradually to prevent delay in interest-rate increases. 

Market reaction to the BoJ Minutes 

At the time of writing, USD/JPY is up 0.11% on the day at 157.48.