Some of the Bank of Japan's policymakers were worried in December that the first stage of the consumption tax hike in April will hurt business and consumer sentiment, although the Policy Board as a whole agreed the economy will probably continue to recover, minutes of the monthly meeting revealed Monday.
"A few members said that the effects of the consumption tax hike — including those on business and consumer sentiment — should be examined without making any prejudgment, considering that the economy had experienced a prolonged period of deflation," the minutes of the Dec. 19 to 20 meeting said.
Policymakers shared the view that an increase in demand before the 3-point tax hike had been observed in the consumption of durable goods such as vehicles, while agreeing that private consumption was likely to remain resilient, supported by apparent improvements in employment and income.