TOKYO (Reuters) -Bank of Japan policymakers debated the need to look out for the side-effects of prolonged monetary easing and the potential impact of a future exit from ultra-low interest rates, a summary of opinions at their October policy meeting showed on Tuesday.
Some in the nine-member board also saw signs the recent cost-driven inflationary pressure was broadening, with one warning that a “big overshoot of inflation cannot be ruled out,” according to the summary.
“It’s important to continue to examine how future exit strategies (from ultra-loose policy) will affect markets, and whether market participants will be well prepared for them,” one member was quoted as saying.
While there is no need to immediately tweak monetary policy, the central bank must pay attention to the side-effects of prolonged easing, according to another opinion quoted in the summary.
At the Oct. 27-28 meeting, the BOJ kept ultra-low interest rates and maintained its dovish guidance, cementing its status as an outlier among global central banks tightening monetary policy to combat soaring inflation.
Source: Economy - investing.com
