TOKYO (Reuters) – Most Bank of Japan policymakers agreed that the central bank must persistently pursue powerful monetary easing, but that additional stimulus measures were unnecessary for now, minutes of the BOJ’s October rate review showed on Tuesday.
“A few members said taking extreme monetary easing steps only to achieve the price goal … could prevent monetary accommodation from producing intended policy effects,” the minutes showed.
One board member said the effects and drawbacks of the BOJ’s purchases of exchange-traded funds (ETF) “should be examined from every angle” even if the move had yet to distort market functions at this point.
The BOJ kept policy steady at the two-day meeting that ended on Oct. 31. But board newcomer Goushi Kataoka dissented to the decision on the view that more easing was needed, complicating future efforts by the bank to withdraw stimulus.
(Reporting by Leika Kihara; Editing by Minami Funakoshi)