The Bank of Japan released the main opinions from its September meeting, indicating that it would continue raising rates, while some members called for an accelerated pace depending on price trends. Others said that a rate hike was not appropriate at this point. The market is moving to price in another rate hike before year-end.
At its Monetary Policy Meeting held on 17 and 18 September, the Bank of Japan decided to raise interest rates, the first hike since June. The main opinions released included a call to accelerate the pace if signs of an upside surprise in prices emerge. Others said that although it was important to keep the neutral rate in mind, the Bank should not be overly cautious about upside inflation risks.
Some members, however, said that a rate hike at this point was inappropriate because the economy and prices were not accelerating significantly. Market expectations point to the possibility that the Bank of Japan will raise rates once more before year-end, and attention is focused on how the pace will develop.