The release of the minutes of BOJ's April 26 meeting showed that there was a healthy debate on the implementation of their plan to boost money supply as they try to inflate their stagnant economy. A few of the salient points were:
- A few members thought that their policies sent contradictory signals to the market which have resulted in the fluctuations seen so far. Their large-scale JGB purchases would lead to downward pressure on interest rates while their “strong determination” to meet their price target would lead to upward pressure on interest rates.
- Some stated the need for a more proactive approach to avoid declining liquidity and wanted to make it clear that this policy is NOT financing government debt.
- They were also cognizant of the difficulty in trying to achieve price target in 2 years with a few members voicing their skepticism on reaching the 2% price stability goal in the latter half of the projection period
- Additionally, they felt that the bank should make a clearer statement on risk factors and emphasized the need for close communication when purchasing JGB's