TOKYO (Reuters) – The Bank of Japan (BoJ) debated the feasibility of a yield curve shift (YCC) at its January monetary policy meeting, with one member saying the bank had to “keep several options in mind”, shows the minutes of the meeting published on Wednesday.

The nine board members concluded that it was premature to abandon the BoJ’s ultra-accommodative monetary policy, while inflation has yet to sustainably reach the 2% target set by the bank.

Several members, however, said that yield curve mismatches, caused in part by massive bond purchases, have not yet been corrected and expressed concern about the rising cost of prolonged monetary easing, show the “minutes”.

“The BoJ will, at some point, have to assess its policy to determine whether the benefits outweigh the costs. Nevertheless, it is, for now, appropriate to maintain monetary easing,” said one of the members of the Board. board of directors.

“The BoJ needs to keep several options in mind when it comes to monetary policy. It is however – as foreign economies are slowing – inappropriate to rush out” of monetary easing policy, said another member of the Board. advice.

The BoJ left its monetary policy unchanged in January, including the ten-year Japanese government bond (JGB) yield cap, going against market expectations.

(Report Leika Kihara; Camille Raynaud)

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