BOJ Remains Concerned with Weak Tokyo CPI

Some Bank of Japan board members expressed concern about weak gains in Tokyo consumer prices and said the situation should be monitored to see what implications the weakness might have for consumer prices nationwide.

However, many members agreed that the underlying price trend remained intact and the BOJ is likely to meet its 2 percent inflation target around the first half of fiscal 2016, minutes of the central bank’s May 21-22 policy meeting showed on Wednesday.

Members also said industrial production could weaken for the time being, but the economy would remain on a recovery path due to strong domestic demand.