{
  "id": 18230193,
  "title": "BOJ debated need for more rate hikes, scope for faster moves, September minutes show",
  "url": "https://urgent.news/2026/11/05/boj-debated-need-for-more-rate-hikes-scope-for-faster-moves-september",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T02:13:26.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/boj-board-saw-the-need-to-keep-raising-rates-september-meeting-minutes-show-5001844"
  },
  "original_language": "en",
  "account": "Tokyo, November 5 - Bank of Japan policymakers acknowledged the necessity of further interest rate hikes, with some signaling potential for quicker increases, according to minutes from their September gathering, reinforcing the argument for another rate increase in December. The board also deliberated Japan's neutral interest rate and the market's assessment of the BOJ's terminal rate, indicating a heightened focus on the extent to which the central bank could raise borrowing costs without overheating the economy. One member suggested that if price increases deviated upwards, the BOJ would need to expedite rate hikes. Another member emphasized the need for prudent policy guidance to curb excessive and persistent price rises. It was deemed beneficial to move the BOJ's policy rate closer to the approximate goal soon, allowing for flexible responses to unforeseen economic shifts, according to another member. At their September meeting, the Bank of Japan raised its key interest rate to a 31-year high of 1.25% and signaled a shift in policy towards maintaining inflation within the bank's 2% target. Despite maintaining the key rate steady at a subsequent meeting in October, the central bank remained vigilant in monitoring inflation risks, solidifying market expectations for a December hike. Many board members projected consumer inflation to surge from autumn, as surveys indicated a growing number of price hikes for food items. Some members also shared the belief that inflation risks would remain elevated due to a renewed rise in crude oil prices caused by the Middle East conflict, prolonged geopolitical tensions, and a weak yen. The Bank of Japan should proceed with timely rate hikes without becoming overly cautious and strive to deepen analysis on inflation risks, remarked one member. The September rate hike followed a June increase, a shorter interval than the roughly twice-a-year hikes in 2024 and 2025, driven by growing price pressures from the Middle East war, high import costs stemming from a weak yen, and the global AI boom. As inflationary pressures persist, markets are concentrating on the terminal rate, or the maximum extent to which the Bank of Japan could raise interest rates during the current hiking cycle. Analysts' estimates for the terminal rate range between 1.75% and 2.0%. A key factor in determining the terminal rate is the Bank of Japan's estimate of where Japan's neutral rate lies. BOJ staff calculations place the nominal neutral rate, which neither stimulates nor slows the economy, between 1.1% and 2.5%. However, the BOJ remains deliberately ambiguous about the precise location of this rate in practice. There is no consensus within the board on the extent to which the BOJ should raise rates. During the September meeting, some members noted that market pricing of the neutral and terminal rates had increased overall, while one member suggested that these rates reflected not only Japan's economic and price outlook but also external developments. While one member stated that Japan's nominal neutral rate might exceed 2%, another cautioned that market projections of the BOJ's terminal rate could surpass levels justified by Japan's wage and price dynamics. Given the difficulty in pinpointing the neutral rate, many members agreed to continue raising interest rates closely monitoring the impact of past rate hikes on financial conditions. A series of public appearances by BOJ officials may provide insights into their views on the pace and timing of future hikes. Bank of Japan Governor Kazuo Ueda will address an IMF seminar in Washington on Friday, while dovish board member Toichiro Asada, one of the two dissenters during the September rate-hike decision, will speak on November 12. Hawkish members Hajime Takata and Naoki Tamura will also present their perspectives this month.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Bank of Japan debated need for more rate hikes, scope for faster move, September minutes show",
        "url": "https://urgent.news/2026/11/05/bank-of-japan-debated-need-for-more-rate-hikes-scope-for-faster-move",
        "published": "2026-11-05T01:43:48.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "BOJ debated need for more rate hikes, scope for faster moves, September minutes show",
        "url": "https://urgent.news/2026/11/05/boj-debated-need-for-more-rate-hikes-scope-for-faster-moves-september-18237276",
        "published": "2026-11-05T03:17:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}