The Bank of Japan released the minutes of its July monetary policy meeting, revealing that several committee members had called for a faster pace of rate hikes. At the meeting, the Bank indicated that it would keep the policy rate at around 1.0%.
The Bank of Japan released the minutes of its July policy meeting. The minutes revealed that several policy board members had called for a faster pace of rate hikes.
According to the minutes, concerns were expressed about upside risks to prices, along with views that the pace of rate hikes should be accelerated. One policy board member noted that the market is pricing in a pace of roughly one rate hike every six months, suggesting that rate hikes could come sooner than the market expects.
Another member pointed to the impact should upside risks to prices materialise and said that the risk of waiting was not insignificant, expressing the view that the pace of rate hikes needed to be increased.
At its subsequent September policy meeting, the Bank of Japan raised the policy rate to around 1.25%.