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Below are some of the main points from the Bank of Japan (BoJ) Summary of Opinions from the most recent policy meeting held on October 30-31 released this Thursday:

Key Highlights:

• Sustainable and stable achievement of the price stability target is not yet envisaged with sufficient certainty at this point, and thus the Bank needs to patiently continue with monetary easing under yield curve control.
• Will continue with the framework of yield curve control and the negative interest rate policy, at least as long as it is necessary for maintaining the price stability target of 2 per cent in a stable manner.
• To confirm that this aim has been achieved, it is necessary to carefully examine future developments in wage hikes and whether the virtuous cycle between wages and prices is operating from both sides.
• Extremely high uncertainties surrounding economies and financial markets at home and abroad, it is appropriate for the Bank to increase the flexibility in the conduct of yield curve control, so that long-term interest rates will be formed smoothly in financial markets in response to future developments.
• There is still a distance to go before achieving the 2 per cent target with the virtuous cycle between wages and prices, it is important for the Bank to keep supporting the momentum for wage hikes through the continuation of monetary easing.
• In this situation, the Bank should maintain the framework of yield curve control while modifying the conduct of it.

Market Reaction

The USD/JPY pair, meanwhile, reacts little and remains on the defensive below the 151.00 round-figure mark, or a one-week high touched the previous day.