The Bank of Japan (BoJ) Board members shared their views on monetary policy outlook and Yield Curve Control (YCC), per the BoJ Minutes of the December meeting.

Key quotes

“Members agreed must patiently maintain an easy policy.”
“Many members said must confirm a positive wage-inflation cycle in order to consider ending negative rates, YCC.”
“A few members said a decision on whether positive wage-inflation cycle is in place must be made comprehensively, not at looking at particular data.”
“A few members said don't see the risk of BOJ being behind the curve, can wait for developments in this spring's annual wage talks.”
“One member said even if wage hikes in 2024 overshoot expectations, risk of trend inflation sharply deviating 2% was small.”
“One member said Japan's inflationary pressure subsiding, important to carefully scrutinize wage, price moves.”
“One member said BOJ can spend ample time determining wage-inflation cycle as it has already addressed side-effects of YCC.”
“One member said the timing to normalize monetary policy was nearing.”
“One member said BOJ must not miss the opportunity to change policy to prevent rising inflation from hurting consumption.”
“This member said the risk of inflation rising too much and requiring sharp monetary tightening was small, but if this happens the cost would be enormous.”
“Members agreed what means, and what order, BOJ would end negative rates and YCC must be decided to look at the economy, price, market moves at the time