One member of the Bank of Japan’s policy board said the central bank may need to boost inflation expectations by influencing currency rates because it is taking such a long time for the country to escape deflation, according to minutes from the central bank’s Aug. 8-9 meeting.
Some board members also expressed concern that a prolonged slowdown in overseas economies could delay Japan’s recovery, the minutes showed on Monday.
The BOJ kept monetary policy on hold at its Aug. 8-9 meeting but cut its assessment of exports and output due to a weak global economy.
Last week, the central bank eased monetary policy by boosting its asset-buying program, with prospects of a near-term recovery in the world’s third-largest economy fading due to weakening exports and a prolonged slowdown in Chinese growth.
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