The Japanese yen was stable today after the release of the Bank of Japan monetary policy minutes. At the same time, the yen rallied together with other currencies against the euro.
The Bank of Japan released minutes of its January meeting today. The minutes showed that some policy members questioned the necessity of the current asset purchase program:
Some members — noting that interest rates had recently been declining further under QQE — said that, when examining risks, it was necessary to closely monitor factors such as the effects this would have on financial institutions’ business conditions and the risk of a buildup of financial imbalances. A few of these members noted that the feasibility of continuing asset purchases into the future warranted attention, even though it seemed technically possible to continue such purchases for some time.
Furthermore, one Board member said that “the Bank should reconsider the time frame for achieving the price stability target and change the expression representing the Bank’s commitment by stating that the time frame for continuing QQE should be restricted to about two years, and that thereafter the Bank would review the monetary easing measures in a flexible manner.”
USD/JPY traded at 119.28 as of 9:44 GMT today after opening at 119.09. EUR/JPY slid from 135.69 to 135.04.
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