Some BOJ policymakers fret stimulus effects diminishing: minutes

[TOKYO] A few Bank of Japan board members warned the effect of the bank's massive stimulus programme might be diminishing, minutes of its June policy meeting showed on Tuesday.

The nine-member board agreed that the underlying trend in inflation, determined by the output gap and long-term inflation expectations, would continue to improve, the minutes showed.

"A few members said the effects of the quantitative and qualitative easing programme might be diminishing, considering long-term interest rates had temporarily risen to a range of 0.5 to 0.6 per cent," the minutes said.

The BOJ has kept monetary policy steady since expanding stimulus in October last year to prevent slumping oil costs, and a subsequent slowdown in inflation, from delaying a sustained exit from deflation.

REUTERS