TOKYO (Reuters) – Bank of Japan policymakers disagreed on the feasibility of allowing bond yields to move more flexibly around the central bank’s zero percent target, reflecting division within the board on how to address the growing demerits of prolonged easing, minutes of their October rate review showed on Wednesday.
One member said the BOJ should not rule out options such as widening the range in which bond yields could move, or shortening the duration of the government bond yield that it targets from the current 10-year yield, the minutes showed.
Another member, however, warned that because inflation remains low, allowing yields to move more flexibly could cast doubt on the BOJ’s commitment to achieve its price target, the minutes of the Oct. 30-31 meeting showed.
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