The Bank of Japan Minutes came out in recent trade and they showed that a few members said chip shortage, supply chain disruptions are weighing on global output, trade.

Additional key notes

Members shared view Japan’s economy likely to improve as impact of pandemic subsides

Many members said pent-up demand has yet to materialise in Japan.

One member said consumption may pick up but sustainability of rebound is uncertain due to weak summer bonus payments.

One member said rises in food, energy costs could deviate from overall price index, must watch their impact on consumption.

One member said pent-up demand may not strengthen as much as expected if pandemic is not contained.

One member said supply constraints lasting longer than what many firms expected, may have bigger-than-expected negative ipmact on japan’s economy.

One member said BoJ must consider phasing out pandemic-relief loan scheme if pandemic’s impact on economy subsides.

One member said BoJ must respond swiftly as needed with close eye on impact china’s property woes could have on global markets.

One member said BoJ must watch closely for any sign of disruption to its market operation from scheme aimed at strengthening regional banks’ profitability.

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