The BOJ also dashed hopes that it would hint at an end to its negative interest rate policy when it stuck to dovish messaging at its September meeting. A member said that there is “still a significantly long way to go before revising the negative interest rate policy, and the framework of yield curve control needs to be maintained.”
Another member, however, said achievement of the BOJ’s 2% inflation target had “clearly come in sight,” adding that it might be possible to assess whether the target has been met “around January through March 2024,” the minutes showed.
The BOJ kept its easy policy settings during its meeting in July, but it also took efforts to allow long-term borrowing prices to rise more freely in accordance with rising inflation and economic development. Also the BOJ predicted during the July meeting that the inflation target would not be met in the fiscal years 2024 and 2025.
The Japanese yen declined to levels that would require government assistance as it fell toward 149 against the dollar, hitting eleven-month lows, as the BOJ has stuck to ultralow rates while the Federal Reserve raises interest rates aggressively to curb inflation.
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