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UPDATE 1-BOJ minutes: Miyao proposed more easing via JGB buying
April 13, 2012 / 1:50 AM / in 6 years

UPDATE 1-BOJ minutes: Miyao proposed more easing via JGB buying

* Others said need to monitor effects of past easing

* BOJ to consider easing at April 27 meeting-sources

By Rie Ishiguro

TOKYO, April 13 (Reuters) - A Bank of Japan board member called unsuccessfully in March for more government bond buying to convince markets of the central bank’s commitment to its new 1 percent inflation target, minutes showed on Friday.

Sources have said the BOJ will consider easing monetary policy at its next review on April 27 by boosting government bond purchases under its 65 trillion yen asset-buying and loan programme.

Any action would follow a surprise easing in February when the BOJ increased its asset buying scheme by 10 trillion yen and set the inflation goal - moves that have helped push the yen sharply lower and have supported share gains.

With inflation around zero, the central bank remains under political pressure to offer further stimulus to a fragile economy.

Ryuzo Miyao argued a 5 trillion yen ($62 billion) increase in the BOJ’s asset-buying scheme would help “further spread throughout the markets an understanding of the BOJ’s policy stance that was clarified at the February meeting,” according to the minutes of the March 12-13 meeting.

Miyao’s proposal was knocked back by a vote of eight to one with most others saying the bank should steadily implement easing steps decided so far and monitor their impact.

The BOJ also met this week, standing pat for a second time since its surprise February action.

Many members also noted that receding tension surrounding Europe’s debt woes and signs of U.S. economic recovery were also factors behind the recent decline in investor risk aversion.

The March minutes showed that one member was concerned that consumer prices continue to show large year-on-year falls, while a few others said consumer prices were starting to rise moderately as a trend.

On April 27, the central bank will also issue a twice-yearly outlook report that will include revised long-term economic and price forecasts for up to the year ending in March 2014.

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