(RTTNews) - Members of the Bank of Japan's monetary policy board said that the central bank must continue to assist the country's fragile economic recovery with all of the means at its disposal, minutes from the bank's June 13 and 14 meeting revealed on Tuesday.
The bank's strategy includes comprehensive monetary easing, ensuring financial market stability, and providing support to strengthen the foundations for economic growth, the minutes showed.
"Japan's economic activity is picking up with an easing of the supply-side constraints caused by the earthquake disaster," the minutes said. "After declining sharply following the earthquake, production has recently shown clear signs of picking up with the easing of supply-side constraints. This has resulted in an upturn in exports. Domestic private demand has also begun to pick up, with some improvement in household and business sentiment."
At the meeting, the BoJ decided to maintain the uncollateralized overnight call rate at around 0 to 0.1 percent by a unanimous vote.
The central bank also lowered Japan's growth prospects for fiscal 2011, citing sharp downturn immediately after the earthquake. The central bank sees real GDP growth of 0.2 percent to 0.6 percent during the fiscal 2011. It was downgraded from 0.6 percent growth estimated in April.
"Growth prospects will likely be somewhat lower for fiscal 2011 due to the sharp downturn immediately after the earthquake," the minutes said.
The outlook for 2012 fiscal year will likely remain broadly unchanged as the economy is expected to return to a moderate recovery path from the second half of fiscal 2011, the bank said. The economic growth is seen between 2.5 percent and 3 percent.
"The Bank will continue to carefully examine the outlook for economic activity and prices, including the effects of the disaster, and take appropriate policy actions as necessary," the minutes said.
Also on Tuesday, the BoJ said that M2 money stock in Japan was up 2.9 percent on year in July - in line with expectations and represented an unchanged reading from the June figure. The M3 money stock added an annual 2.3 percent, beating forecasts for a gain of 2.2 percent following the upwardly revised 2.3 percent increase in the previous month. The original June reading called for a 2.2 percent gain.
Upon the release of the data, the Japanese yen gained slightly against major currencies, trading at 126.59 against the pound, 77.60 versus the U.S. dollar, 110.01 against the euro and 102.88 versus the Swiss franc.
Source: www.rttnews.com
The bank's strategy includes comprehensive monetary easing, ensuring financial market stability, and providing support to strengthen the foundations for economic growth, the minutes showed.
"Japan's economic activity is picking up with an easing of the supply-side constraints caused by the earthquake disaster," the minutes said. "After declining sharply following the earthquake, production has recently shown clear signs of picking up with the easing of supply-side constraints. This has resulted in an upturn in exports. Domestic private demand has also begun to pick up, with some improvement in household and business sentiment."
At the meeting, the BoJ decided to maintain the uncollateralized overnight call rate at around 0 to 0.1 percent by a unanimous vote.
The central bank also lowered Japan's growth prospects for fiscal 2011, citing sharp downturn immediately after the earthquake. The central bank sees real GDP growth of 0.2 percent to 0.6 percent during the fiscal 2011. It was downgraded from 0.6 percent growth estimated in April.
"Growth prospects will likely be somewhat lower for fiscal 2011 due to the sharp downturn immediately after the earthquake," the minutes said.
The outlook for 2012 fiscal year will likely remain broadly unchanged as the economy is expected to return to a moderate recovery path from the second half of fiscal 2011, the bank said. The economic growth is seen between 2.5 percent and 3 percent.
"The Bank will continue to carefully examine the outlook for economic activity and prices, including the effects of the disaster, and take appropriate policy actions as necessary," the minutes said.
Also on Tuesday, the BoJ said that M2 money stock in Japan was up 2.9 percent on year in July - in line with expectations and represented an unchanged reading from the June figure. The M3 money stock added an annual 2.3 percent, beating forecasts for a gain of 2.2 percent following the upwardly revised 2.3 percent increase in the previous month. The original June reading called for a 2.2 percent gain.
Upon the release of the data, the Japanese yen gained slightly against major currencies, trading at 126.59 against the pound, 77.60 versus the U.S. dollar, 110.01 against the euro and 102.88 versus the Swiss franc.
Source: www.rttnews.com
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