The Bank of Japan released the main opinions from its September meeting. Committee members were divided over the appropriateness and pace of rate hikes, with some suggesting that the pace could accelerate depending on price trends. The Cabinet Office’s views were also presented.
The Bank of Japan released the main opinions of its Policy Board members at its September Monetary Policy Meeting. The meeting produced a decision to raise the policy rate to 1.25%, and the main opinions included the view that financial conditions remained in accommodative territory, as well as comments premised on the need for further rate cuts.
Among the published opinions was a call to accelerate the pace of rate hikes if signs of an upside surprise in prices emerged, suggesting the possibility of faster rate hikes. Meanwhile, 2 committee members reportedly voted against the rate hike, citing the fact that the year-on-year increase in the consumer price index was below 2% and that current economic conditions could not be considered robust.
It was also disclosed that the Cabinet Office had called for the cumulative impact of previous rate hikes to be thoroughly reviewed. After the opinions were released, the yen temporarily weakened in the foreign exchange market, while some economic observers were reported to have called for close attention to the Cabinet Office’s stance.