* Others said need to monitor effects of past easing
* BOJ to consider easing at April 27 meeting-sources
By Rie Ishiguro
TOKYO, April 13 (Reuters) – A Bank of Japan board member
called unsuccessfully in March for more government bond buying
to convince markets of the central bank’s commitment to its new
1 percent inflation target, minutes showed on Friday.
Sources have said the BOJ will consider easing monetary
policy at its next review on April 27 by boosting government
bond purchases under its 65 trillion yen asset-buying and loan
programme.
Any action would follow a surprise easing in February when
the BOJ increased its asset buying scheme by 10 trillion yen and
set the inflation goal – moves that have helped push the yen
sharply lower and have supported share gains.
With inflation around zero, the central bank remains under
political pressure to offer further stimulus to a fragile
economy.
Ryuzo Miyao argued a 5 trillion yen ($62 billion) increase
in the BOJ’s asset-buying scheme would help “further spread
throughout the markets an understanding of the BOJ’s policy
stance that was clarified at the February meeting,” according to
the minutes of the March 12-13 meeting.
Miyao’s proposal was knocked back by a vote of eight to one
with most others saying the bank should steadily implement
easing steps decided so far and monitor their impact.
The BOJ also met this week, standing pat for a second time
since its surprise February action.
Many members also noted that receding tension surrounding
Europe’s debt woes and signs of U.S. economic recovery were also
factors behind the recent decline in investor risk aversion.
The March minutes showed that one member was concerned that
consumer prices continue to show large year-on-year falls, while
a few others said consumer prices were starting to rise
moderately as a trend.
On April 27, the central bank will also issue a twice-yearly
outlook report that will include revised long-term economic and
price forecasts for up to the year ending in March 2014.
