Bank of Japan policymakers discussed the potential for further easing at their latest meeting, with one member suggesting another cut to short-term interest rates amid rising expectations for additional stimulus, a summary of their opinions showed Monday.
Lingering concerns over the global economic outlook and the expected impact from the two-point consumption tax hike on Tuesday prompted the Policy Board to decide at its meeting on Sept. 18 and 19 to re-examine the outlook for Japan and prices at its October meeting.
"It is necessary to take additional easing measures pre-emptively," one of the nine Policy Board members said, adding that "given the current flattening of the yield curve, lowering the short-term policy interest rate is appropriate."