BOJ Monetary Policy Meeting Concerns about the impact of the consumption tax hike
The Bank of Japan decided to maintain large-scale monetary easing measures at a monetary policy meeting held last week, but at the meeting, after the consumption tax hike, the recovery of personal consumption was weak, and opinions continued on concerns about the impact of the tax increase. I understood that there was.
The Bank of Japan released key opinions from attendees at the Monetary Policy Meetings held on March 20 and 21 this month.
At the meeting, the BOJ maintained a large-scale monetary easing policy, and Governor Kuroda said in a press conference that the decline in personal consumption after the consumption tax hike was "temporary and the uptrend has been maintained." Was expressed.
However, at the meeting, domestic economic indicators since last October have not been optimistic due to weakness, and the pace of recovery in personal consumption has been weak, and indicators of consumer sentiment have been lower than in the previous tax rate increase six years ago. If the momentum of improvement was slow, it became clear that there were a number of opinions about the impact.
Some commented that it was necessary to carefully look at the "side effects" of monetary easing, including the prolonged low interest rates due to large-scale monetary easing measures, and the deterioration of profits at financial institutions.
The Bank of Japan is likely to continue to consider policies while checking whether the slump in consumption will continue as the consumption tax hike rises.