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September 28, 2021.
September 28, 2021
Bank of Japan
Minutes of the
Monetary Policy Meeting
on July 15 and 16, 2021
(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 Thursday, July 15, 2021, from 2:00 p.m. to 3:58 p.m., and on Friday, July 16, from 9:00 a.m. to 11:49 a.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. NAKANISHI Kenji, State Minister of Finance, Ministry of Finance2
Mr. ONO Heihachiro, Deputy Vice-Minister for Policy Planning and Coordination, Ministry of Finance3
Mr. AKAZAWA Ryosei, State Minister of Cabinet Office, Cabinet Office2 Mr. TAWA Hiroshi, 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
- The minutes of this meeting were approved by the Policy Board at the Monetary Policy Meeting held on September 21 and 22, 2021, 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.
- Messrs. Nakanishi and Akazawa were present on July 16.
- Messrs. Ono and Tawa were present on July 15.
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Mr. SHIMIZU Seiichi, Director-General, Monetary Affairs Department
Mr. FUKUDA Eiji, Deputy Director-General, Monetary Affairs Department4
Mr. IIJIMA Kota, 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. KAWAMOTO Takuji, 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. HONDA Hisashi, Director, Deputy Head of Planning and Coordination Division, Secretariat of the Policy Board
Mr. NAKASHIMA Motoharu, Head of Policy Infrastructure Division, Monetary Affairs Department4
Mr. NAGAE Shinichiro, Senior Economist, Monetary Affairs Department Mr. ANDO Masatoshi, Senior Economist, Monetary Affairs Department Mr. KADOGAWA Yoichi, Senior Economist, Monetary Affairs Department
4 Messrs. Fukuda and Nakashima were present on July 16 from10:13 a.m. to 11:49 a.m.
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I. Summary of Staff Reports on Economic and Financial Developments5
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 June 17 and 18, 2021, the Bank had been conducting purchases of Japanese government bonds (JGBs).6 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.
With a view to supporting financing, mainly of firms, and maintaining stability in financial markets, the Bank had taken the following measures: 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), both under the Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19); flexible provision of ample funds, mainly through purchases of JGBs and conduct of the U.S. dollar funds-supplying operations; and 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 0.03 to minus 0.05 percent; general collateral (GC) repo rates had been in the range of around minus 0.07 to minus 0.09 percent. As for interest rates on term instruments, yields on three-month treasury discount bills (T-Bills) had been more or less flat.
While U.S. stock prices had been rising, mainly driven by IT-related stocks, the Tokyo Stock Price Index (TOPIX) was generally unchanged, albeit with fluctuations; this reflected concerns over the difference in progress with vaccinations in Japan relative to the United States and Europe as well as the reinstatement of the state of emergency for Tokyo.
- Reports were made based on information available at the time of the meeting.
- 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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Bank of Japan published this content on 28 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2021 00:01:07 UTC.