BoJ Members Agree Financial Conditions Remain Accommodative

Bank of Japan (BoJ) board members agreed in their July meeting that financial conditions remain accommodative, according to the BoJ Minutes. Members noted consumer prices are rising due to increased import costs, while companies are passing on rising raw material costs to sustain high wholesale inflation.

Many members also observed that medium- and long-term inflation expectations are increasing for households and companies. Some members expect consumer goods price increases to expand from summer onward.

The market reaction to the BoJ Minutes saw USD/JPY up 0.11% on the day at 157.48.