Bank of Japan : Minutes of the Monetary Policy Meeting on April 27 and 28, 2022

Not to be released until 8:50 a.m.

Japan Standard Time on Wednesday,

June 22, 2022.

June 22, 2022

Bank of Japan

Minutes of the

Monetary Policy Meeting

on April 27 and 28, 2022

(English translation prepared by the Bank's staff based on the Japanese original)

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Secretariat of the Policy Board, Bank of Japan

P.O. Box 30, Nihonbashi, Tokyo 103-8660, Japan

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A Monetary Policy Meeting of the Bank of Japan Policy Board was held in the Head Office of the Bank of Japan in Tokyo on Wednesday, April 27, 2022, from 2:00 p.m. to 3:52 p.m., and on Thursday, April 28, from 9:00 a.m. to 12:02 p.m.1

Policy Board Members Present

Mr. KURODA Haruhiko, Chairman, Governor of the Bank of Japan Mr. AMAMIYA Masayoshi, Deputy Governor of the Bank of Japan Mr. WAKATABE Masazumi, Deputy Governor of the Bank of Japan Mr. SUZUKI Hitoshi

Mr. KATAOKA Goushi

Mr. ADACHI Seiji

Mr. NAKAMURA Toyoaki

Mr. NOGUCHI Asahi

Ms. NAKAGAWA Junko

Government Representatives Present

Mr. OIE Satoshi, State Minister of Finance, Ministry of Finance2

Mr. ONO Heihachiro, Deputy Vice-Minister for Policy Planning and Coordination, Ministry of Finance3

Mr. KIKAWADA Hitoshi, State Minister of Cabinet Office, Cabinet Office2 Mr. INOUE Hiroyuki, Vice-Minister for Policy Coordination, Cabinet Office3

Reporting Staff

Mr. UCHIDA Shinichi, Executive Director

Mr. YAMADA Yasuhiro, Executive Director

Ms. SHIMIZU Tokiko, Executive Director (Assistant Governor)

Mr. KAIZUKA Masaaki, Executive Director

1. The minutes of this meeting were approved by the Policy Board at the Monetary Policy Meeting held on June 16 and 17, 2022, as "a document describing an outline of the discussion at the meeting" stipulated in Article 20, paragraph 1 of the Bank of Japan Act of 1997. Those present are referred to by their titles at the time of the meeting.
2. Messrs. Oie and Kikawada were present on April 28.
3. Messrs. Ono and Inoue were present on April 27.

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Mr. SHIMIZU Seiichi, Director-General, Monetary Affairs Department

Mr. KAWAMOTO Takuji, Head of Policy Planning Division, Monetary Affairs Department

Mr. MASAKI Kazuhiro, Director-General, Financial System and Bank Examination Department

Mr. OTANI Akira, Director-General, Financial Markets Department

Mr. KAMEDA Seisaku, Director-General, Research and Statistics Department

Mr. NAGANO Teppei, Head of Economic Research Division, Research and Statistics Department

Mr. HIROSHIMA Tetsuya, Director-General, International Department

Secretariat of the Monetary Policy Meeting

Mr. NAKAJIMA Takeshi, Director-General, Secretariat of the Policy Board

Mr. KINOSHITA Takao, Director, Deputy Head of Planning and Coordination Division, Secretariat of the Policy Board

Mr. NAGAE Shinichiro, Senior Economist, Monetary Affairs Department Mr. ANDO Masatoshi, Senior Economist, Monetary Affairs Department Mr. KADOGAWA Yoichi, Senior Economist, Monetary Affairs Department

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I. Summary of Staff Reports on Economic and Financial Developments4

A. Market Operations in the Intermeeting Period

In accordance with the short-term policy interest rate of minus 0.1 percent and the target level of the long-term interest rate, both of which were decided at the previous meeting on March 17 and 18, 2022, the Bank had been conducting purchases of Japanese government bonds (JGBs).5 In this situation, 10-year JGB yields had been at around 0 percent, and the shape of the JGB yield curve had been consistent with the guideline for market operations. Meanwhile, the Bank had conducted outright purchases of 10-year JGBs through, for example, the fixed-rate method for several consecutive days (fixed-rate purchase operations for consecutive days) when upward pressure on 10-year JGB yields had increased, mainly reflecting developments in U.S. interest rates.

With a view to supporting financing, mainly of firms, and maintaining stability in financial markets, the Bank had taken the following measures: (1) purchases of CP and corporate bonds and conduct of the Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19) (the Special Operations to Facilitate Financing), both under the Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19) (the Special Program), with the completion at the end of March 2022 of additional purchases of CP and corporate bonds and fund-provisioning against private debt pledged as collateral under the Special Operations to Facilitate Financing; (2) flexible provision of ample funds, mainly through purchases of JGBs and conduct of the U.S. dollar funds-supplying operations; and (3) purchases of exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) with upper limits of about 12 trillion yen and about 180 billion yen, respectively, on annual paces of increase in their amounts outstanding.

B. Recent Developments in Financial Markets

In the money market, interest rates on both overnight and term instruments generally had been in negative territory. With regard to interest rates on overnight instruments, the uncollateralized call rate had been in the range of around minus 0.004 to minus 0.020 percent. General collateral (GC) repo rates had been in the range of around minus 0.083 to minus

1. Reports were made based on information available at the time of the meeting.
2. The target level of the long-term interest rate was as follows:

The Bank will purchase a necessary amount of JGBs without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

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