The BOJ's minutes suggest that the inflation target is coming within reach, and the market is focused on expectations of faster rate hikes and volatility in the yen exchange rate.
While BOJ Policy Board members pointed out that financial conditions remain accommodative, the minutes were reported to suggest that consumer prices are rising against a backdrop of higher import costs and that companies are passing on increases in raw material prices to their selling prices.
Against this backdrop, the minutes were interpreted as suggesting that the timing for achieving the inflation target is approaching, drawing attention in the market to possible future policy changes and rate hikes.
The market is increasingly pricing in an acceleration in the pace of rate hikes, while caution over volatility in the yen exchange rate is also spreading, reports said.