The "Summary of Opinions" from the BoJ's March meeting
The "Summary of Opinions" from the BoJ's March meeting argued for "maintaining powerful monetary easing" in order to sustain momentum for hitting its price goals. The BoJ aimed to keep current policy intact, while watching economic developments and keeping an eye out for the side-effects of stimulus, also ensuring that the fiscal and monetary policy mix is maintained. But after biding its time, the BoJ must "take policy action pre-emptively" if economic and price developments change. In fact, it is starting to "prepare for a policy response as downside risks materialize." If momentum for price growth is lost, the BoJ should "ease decisively," though not respond automatically to each economic swing. Though there is room to review their bond buying operation, the BoJ does warn of diminishing returns for additional easing via further declines in JGB yields, which may be more limited relative to the past. The BoJ views downside risks to Japan's economy "clearly heightening," amid increasing signs of Japan sliding into recession amid slowing global growth and the sales tax hike impact.