News Headline Summary

Bank of Japan December minutes: members say economy is weakening and will continue with powerful easing

- Ishida proposed cutting rate for fixed rate market operation and other loan schemes to 0.03% from 0.1%.
- Ishida proposed scrapping 0.1% interest paid to excess reserves at BoJ.
- Another member said must mull costs and benefits of scrapping 0.1% floor on rates and it is too early to do so now.
- Another member said must first debate whether to cut overnight policy rate before mulling scrapping of 0.1% interest on reserves.
- A few members said should sharply increase treasury discount bill buying to aim for effect on FX.
- One member said should clarify BoJ's open ended pledge to easy policy until CPI reaches 1%.
- Govt. Rep. said wants BoJ to conduct aggressive and bold monetary policy.
- A few members said must be cautious on Japan's price outlook given wage moves.
- Some members said effects on currency rates of scrapping interest rate could be temporary.
- One member said BoJ should discuss lowering key short-term rates before discussing excessive reserve rate cut.
- One said scrapping scrapping interest rate should be accompanied by change in interest rate on asset purchases and lending facility.
- One said scrapping interest rate wont damage money market function.
- One said eliminating interest rates on excess reserves effective in weakening JPY.

Print 23:50, 24 Jan 2013 - Asian News - Source: Newswires