The Bank of Japan (BoJ) released minutes from its December meeting, showing board members' discussions on monetary policy. The bank said the Japanese economy showed moderate recovery, driven by corporate profits and stable employment, though some areas remained weak.
The board kept the uncollateralized overnight call rate at 0.25% and continued government bond purchases of ¥4.9 trillion per month. The minutes revealed that BoJ members reviewed long-term monetary easing since the late 1990s, noting its benefits and side effects. While some pushed for a rate hike to 0.5%, most voted to keep it at 0.25%, citing uncertainties in wage growth and global conditions.
The BoJ reaffirmed its cautious stance, stating future adjustments will depend on inflation trends, wages and global risks.