Thursday, September 21

BOJ board agreed inflation may overshoot expectations – Jan meeting minutes

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TOKYO — Bank of Japan policymakers agreed that consumer inflation may overshoot their expectations if companies pass on rising costs quicker than expected, minutes of the central bank’s January meeting showed on Thursday.

Many in the BOJ’s nine-member board said they were closely watching developments in wages, as they make up a big component of service costs and determine to what extent households would swallow price hikes, the minutes showed.

At the Jan. 17-18 policy meeting, the BOJ raised its inflation forecasts but maintained its massive stimulus with price growth still distant from its 2% target. (Reporting by Leika Kihara; Editing by Jacqueline Wong)