TOKYO (Reuters) – Bank of Japan policymakers in April discussed growing uncertainty over the economic outlook , with one warning that a scheduled sales tax hike and soft global demand could push the country into recession, a summary of the rate review showed.
One board member said the BOJ must be ready to ease monetary policy further “decisively and flexibly” if the economy lost momentum towards achieving the bank’s 2 percent inflation target, the summary showed on Friday.
Another member argued, however, that further declines in interest rates could aggravate the demerits of monetary easing rather than boost the economy, according to the summary.
At the April meeting, the BOJ kept monetary policy steady but pledged to keep interest rates at super-low levels for at least one more year, in a move to dispel any doubt over its commitment to ultra-loose policies.
Reporting by Leika Kihara; Editing by Chang-Ran Kim