According to the minutes released on Thursday, two policy board
members voiced concern about a large contribution from inventories
and a fall in wages in Japan's latest gross domestic product data.
"This may be indicative of a downward shift in growth, instead of
merely a temporary slowdown," one member said, referring to the
third-quarter GDP data.
Differing views over the pace of growth could make it difficult for
the BOJ to present a united front next year, when GDP could dip
sharply in the second quarter after a planned increase in the
national sales tax.
In the July-September quarter Japan's economy grew 0.3 percent,
slower than 0.9 percent growth in the previous quarter as consumer
spending and exports weakened.
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Many economists say GDP growth has already picked up as exports have
improved.
But an increase in the sales tax to 8 percent from 5 percent in
April is expected to cause a temporary contraction, which will be a
test of whether the BOJ can ride out pressure to ease policy
further.
At the Nov. 20-21 meeting, the BOJ board voted unanimously to
maintain its pledge of increasing base money, or cash and deposits
at the central bank, at an annual pace of 60 trillion to 70 trillion
yen ($600 billion to $700 billion).
The BOJ made this pledge in April this year to meet its 2 percent
inflation target in two years.
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Many members said consumer spending and domestic demand are
contributing to broad gains in consumer prices, the minutes showed.
However, one member expressed doubt that the BOJ could meet its
price target, because long-term inflation expectations are
controlled by economic fundamentals, the minutes showed.
BOJ Governor Haruhiko Kuroda on Wednesday said consumer inflation
will exceed 1 percent in the first half of next year and help the
central bank achieve its goal of changing the public's perception
that deflation will persist.
(Reporting by Stanley White; editing by
Edmund Klamann and Chris Gallagher)
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