BOJ Minutes: Accommodative Conditions Persist Amid Rising Inflation Concerns

The Bank of Japan (BOJ) conducted money market operations in July as per its guideline from June 15 and 16. The uncollateralized overnight call rate remained within a narrow range of 0.976 to 0.981 percent.

In June, the BOJ purchased Japanese government bonds (JGBs) at about 2.7 trillion yen per month. In July, it reduced this amount by approximately 200 billion yen to around 2.5 trillion yen per month, in line with its plan for outright JGB purchases decided in June.

The BOJ noted that financial conditions remain accommodative, according to the minutes of its meeting. Some members observed that consumer prices are rising due to increased import costs, and many agreed that underlying inflation is nearing 2%, demanding a focus on stability.