BOJ members flagged inflation risks, some sought faster rate hikes: July minutes
Bank of Japan July meeting minutes show many board members saw a need to focus on rising inflation risks, with some calling for faster rate hikes than markets expect.
Many Bank of Japan board members believed the central bank needed to concentrate on growing inflation risks, and some argued for quicker interest rate increases, according to minutes of the bank's July meeting released on Monday.
One member noted that markets seemed to anticipate the BOJ raising rates at roughly six-month intervals, but suggested the actual pace could be quicker. The member pointed to underlying inflation having moved close to 2% and to a stronger case for watching upside price risks.
The minutes indicate that the balance of concern within the board tilted toward the danger of inflation running above target rather than below it. The discussion reflects an internal debate over how quickly the central bank should tighten policy, even as market participants price in a more gradual path.
The release of the July minutes offers insight into the board's thinking at a time when price pressures have been building. It does not signal a decision on the timing or size of any future rate move, but it highlights that some members see scope for a faster pace than markets currently expect.