The BOJ released the minutes of its July meeting. It emerged that multiple policy board members had said rate hikes should proceed in light of inflation risks. Some also called for an acceleration in the pace of rate hikes.
At its policy meeting on 30 and 31 July, the BOJ kept its policy rate at around 1.0%. The minutes were released, and reports said they showed that multiple policy board members had said rate hikes should proceed in light of rising inflation risks.
One member said it would be desirable to adjust the degree of monetary easing in stages to prevent delayed rate hikes from accelerating inflation. Another argued that the pace of adjustments to the degree of easing should be increased, citing a change in the phase aimed at avoiding an upside surprise in prices.
The minutes indicated that, due to turmoil in the Middle East and yen depreciation, there was a view that it was “necessary to remain more aware than ever of the risk of an upside surprise in prices.” The BOJ decided on an additional rate hike at its meeting that month.
The announcement made public the details of the discussions at the July policy meeting and has drawn market participants' attention to the future course of monetary policy.