Bank of Japan board March minutes show agreement easy policy working

Minutes from the March meeting of the Bank of Japan board showed members shared the view that the effects of the aggressive easy policy launched in April 2013 are steadily working, according to text released on Friday.

The nine board members 'expressed the view that it was appropriate for the BOJ to continue to steadily pursue quantitative and qualitative monetary easing in accordance with the current guidelines, as Japan's economic and priced evelopments had been broadly in line with the forecasts presented in October 2013,' the minutes showed.

The March meeting minutes indicated that the policymakers don't see an imminent need for additional easy policy, although market players are betting on additional monetary easing in the coming month.

There was agreement that that real interest rates are falling on the back of a rise in inflation expectations, the minutes also showed.

But one member questioned the expectations for the policy

'If a rise were to occur in markets' anticipation that quantitative and qualitative easing would continue for a protracted period or extreme additional measures would be implemented in a situation where it was unlikely that the price stability target would be achieved in about two years, this could lead to economic instability in the medium to long term, such as through a buildup of financial imbalances,' they showed.