BoJ Minutes for Jun 19 and 20 2019 meeting: Members felt it appropriate to keep easing persistently

• BoJ releases the minutes of its Monetary Policy Meeting for Jun 19 and 20 2019.
• Japanese Monetary Base (YoY) Jul: 3.7% (prev 4.0%).

The  Bank of Japan's Minutes have been released. 

Key points:

• One member said Japan's lending rates approaching reversal rates.
• Lower lending rates could reduce bank loans.
• Some members saw no need to follow too strictly BoJ's bond range.
• Appropriate to control bond yields flexibly.
• Most members viewed appropriately to keep easing persistently.
• One member saw a vital mix of monetary, fiscal policy sustained.

BoJ Minutes Of June 19 Monetary Policy Meeting – Full Statement

In accordance with the short-term policy interest rate of minus 0.1 percent and the target level of the long-term interest rate, both of which were decided at the previous meeting on April 24 and 25, 2019, the Bank had been providing funds through purchases of Japanese government bonds (JGBs) and other measures.6In this situation, 10-year JGB yields had been at around 0 percent, and the shape of the JGB yield curve had been consistent with the guideline for market operations.

In the money market, interest rates on both overnight and term instruments generally had been in negative territory. The uncollateralized overnight call rate had been in the range of around minus 0.02 to minus 0.08 percent. As for interest rates on term instruments, yields on three-month treasury discount bills (T-Bills) generally were more or less unchanged at around minus 0.15 percent.