Investing.com - Some Bank of Japan board members suggested that higher government spending is a key variable in lifting price expectations, according to the minutes of the August meeting released on Friday.
The minutes noted the certain job categories are commanding higher wages, but that the slowdown in China has weighed on exports and a drag on economic prospects. As well, the central bank said weak oil prices continue to have a strong effect on the inflation goal. In its most recent review, the BoJ kept policy steady and its asset buying program at ¥80 trillion annually.
Overnight, citing the negative effects of global economic weakness on U.S. inflation, the FOMC voted to leave its benchmark Federal Funds Rate at its current level between zero and 0.25% on Thursday. Nearly a decade has passed since the U.S. central bank has last raised short-term rates.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the FOMC said in a statement.