BOJ Considering Multiple Easing Options – Nikkei Report by Reuters

Support for additional monetary easing is increasing within the Bank of Japan, with several options being discussed. However, some members of the nine-member board believe that the central bank has taken sufficient measures for the time being and are likely to oppose any proposals aimed at expanding monetary stimulus.

Proponents of further easing highlight the weakening chances of Japan achieving the Bank’s 2 percent inflation target and emphasize the necessity to align monetary easing with an expected fiscal stimulus package, which is anticipated to be announced early next week.

Internal discussions at the Bank have considered various measures, including the possibility of deepening negative interest rates, increasing government bond purchases, and augmenting the buying of exchange-traded funds (ETFs). However, there has been limited progress in deciding on a specific course of action, as noted by reports.

The Bank of Japan is currently engaged in a two-day policy meeting that is set to conclude on Friday.