The Bank of Japan raised its policy rate to 1.25% at its 17–18 September meeting. Some participants said that the pace of rate hikes would need to be accelerated if signs of an underlying rise in prices emerged.
The Bank of Japan announced that it would raise its policy rate to 1.25% at its September monetary policy meeting. Participants cited the resilience of the economy as a reason for choosing to act after a short interval of 3 months since the previous rate hike.
The Summary of Opinions expressed the view that risks of another upside surprise in the underlying inflation rate had become apparent, and that it was important to conduct policy in a way that would not adversely affect the economy. Some participants also suggested that the pace of rate hikes could be accelerated to contain upside price pressures.
Some participants also indicated that rate hikes were necessary from the perspective of curbing import inflation caused by yen depreciation. Committee members Tōichirō Asada (浅田統一郎) and Ayano Satō (佐藤綾野) expressed opposition at the meeting.