2017.07.2421:31:00UTC+00BoJ Minutes: Recovery Remains On Track, Expected To Continue

Members of the Bank of Japan's Monetary Policy Board said that the country's economic recovery continues to show progress, and figures to continue to do so, minutes from the bank's June 15-16 meeting revealed on Tuesday.

"Domestic demand is likely to follow an uptrend, with a virtuous cycle from income to spending being maintained in both the corporate and household sectors," the minutes said.

Among the downside risks to the recovery is the uncertainty now surrounding U.S. economic policies.

Exports have been on an increasing trend, the minutes showed, while inflation expectations remain in a weakening phase.

"Most members shared the view that the year-on-year rate of change in the CPI was likely to turn slightly positive and thereafter would continue on an uptrend and increase toward 2 percent, mainly on the back of an improvement in the output gap and a rise in medium- to long-term inflation expectations," the minutes said.

At the meeting, the central bank voted to retain its target of raising the amount of outstanding Japan government bond holdings at an annual pace of about JPY 80 trillion.

The BoJ board also voted to retain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.

The central bank also will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.

"The bank will make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target," the minutes said.