Sustainable achievement of the price stability target had not yet come in sight

The minutes of the September Bank of Japan (BoJ) meeting showed this Monday that members agreed that sustainable and stable achievement of the price stability target, accompanied by wage increases, had not yet come in sight.

Key Highlights:

• One member said such judgment cannot be made under current circumstances that achievement of the 2 % target is unforeseeable.
• Most members said no need to take additional steps on YCC operations as long-term rates are relatively stable.

This, in turn, suggests that the BoJ will continue with its extremely accommodative policy, which, along with the upbeat market mood undermines the safe-haven Japanese Yen (JPY) and acts as a tailwind for the USD/JPY pair.