A Bank of Japan board member said thereÃ¢â‚¬â„¢s uncertainty about the U.S. Federal ReserveÃ¢â‚¬â„¢s quantitative easing policy, minutes from the bankÃ¢â‚¬â„¢s policy- setting meeting showed.
One Ã¢â‚¬Å“member was of the view that the effects of the measure takenÃ¢â‚¬Â by the Fed Ã¢â‚¬Å“were highly uncertain and growth in the U.S. economy was still likely to remain low for some time,Ã¢â‚¬Â minutes from a Nov. 4-5 meeting released by the BOJ in Tokyo today said.
The BOJ board meeting was held after the Fed announced it would buy an additional $600 billion of Treasuries to support the worldÃ¢â‚¬â„¢s biggest economy. Regarding JapanÃ¢â‚¬â„¢s expansion, BOJ members said they needed to continue to monitor the effect of the yenÃ¢â‚¬â„¢s advance on exporters, with one person noting gross domestic product could contract this quarter.
Ã¢â‚¬Å“Many members said that careful attention should continue to be paid to the possibility that the appreciation of the yen might exert downward pressure on JapanÃ¢â‚¬â„¢s economy by negatively affecting business and household sentiment,Ã¢â‚¬Â the minutes said. Ã¢â‚¬Å“A few members expressed the opinion that careful attention should be paid to the economyÃ¢â‚¬â„¢s vulnerability to downside risks, particularly when the pace of economic improvement remained slow.Ã¢â‚¬Â
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