The BOJ's "Summary of Opinions" from its October meeting showed a mix of views favoring an early rate hike and more cautious opinions. The possibility of a December rate hike was discussed, shifting the focus to the level of the neutral rate and wage trends. Attendees from the Ministry of Finance and the Cabinet Office also commented on how to sell ETFs.
The BOJ's published "Summary of Opinions" sets out the range of views held by the Monetary Policy Board members who participated in the meeting. Key points from this meeting included the decision to leave the policy rate unchanged at 1.25% by 8 votes to 1, and the opposing view from committee member Takata that the rate should be raised to 1.5%. The underlying rate of inflation was judged to be broadly consistent with the 2% target, and the importance of establishing it at around 2% going forward was noted.
The more cautious members said that, given the current situation in which rates have already entered the estimated range for the neutral rate, the BOJ should assess the size and pace of further increases rather than rushing to raise rates. Some viewed the neutral rate as appreciably higher than 1%, and there is a view that decisions including those at the next meeting in December will be the focus going forward.