By Leika Kihara
TOKYO (Reuters) – Bank of Japan policymakers agreed to further debate the timing of an exit from its ultra-loose monetary policy, and the appropriate pace of interest rate hikes thereafter, minutes of their December meeting showed on Friday.
In a sign they were already brainstorming ideas, some in the board said the BOJ could maintain its bond yield control as a loose framework even after pulling short-term interest rates out of negative territory, the minutes showed.
“A few members said the BOJ will likely maintain massive monetary easing for some time, even after ending negative interest rates and yield curve control,” the minutes showed.
The minutes add to recent growing signs the BOJ is gearing up for a near-term end to its negative interest rate policy and yield curve control (YCC).
The BOJ maintained its ultra-loose monetary policy at the December meeting. It kept policy steady at a subsequent meeting on Tuesday but signalled its growing conviction that conditions for phasing out its huge stimulus were falling into place, suggesting that an end to negative interest rates was nearing.
(Reporting by Leika Kihara; Editing by Muralikumar Anantharaman)
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