Bank of Japan debated need for faster rate hikes, July minutes show
There was growing concern within the board of mounting inflation risks
Bank of Japan policymakers expressed concern over rising inflation risks in July, prompting discussions about the need for faster interest rate increases, according to minutes from their meeting. While the central bank raised rates in June and September, pausing in July, policy rate to a 31-year high of 1.25 per cent, inflation remained a top priority for many.
Some members advocated for quicker hikes, despite markets anticipating intervals of about six months. The BOJ's focus shifted towards anchoring underlying inflation around its 2 per cent target, rather than just pushing up prices. Analysts believe the bank may hike rates more frequently, possibly as soon as October or December, given the growing inflation risks.
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Also reported by 3 other outlets
- Bank of Japan debated need for faster rate hikes, July minutes show investing.com
- Calls for Faster Rate Hikes Voiced at BOJ July Meeting nippon.com
- Bank of Japan debated need for faster rate hikes, July minutes show channelnewsasia.com
