A few Bank of Japan board members said the central bank must work carefully with the government in dealing with the next economic downturn, minutes of the BOJ's October rate review showed Tuesday.
The nine-member board also debated the demerits of prolonged monetary easing, with one warning that life insurers could struggle to meet provisions guaranteed to policyholders if current ultralow interest rates persist, the minutes showed.
The deliberations highlight the growing view within the BOJ that fiscal policy may need to play a bigger role in battling risks to the economy, given the rising cost and diminishing return of monetary easing.