The Bank of Japan released the minutes from its July meeting, with a succession of views expressed in favor of additional rate hikes. While a growing view supports gradually shifting policy decisions toward establishing underlying inflation at around 2%, some also called for caution regarding upside risks to prices.
The Bank of Japan released the minutes from its July monetary policy meeting. Although an additional rate hike was deferred, many views supported accelerating the pace of rate hikes.
The minutes state that several policymakers expressed the view that policy decisions are gradually shifting toward establishing underlying inflation at around 2%.
Some policymakers said that more attention than before should be paid to upside risks to prices, and pointed to the possibility that the pace of rate hikes could be faster than the market expects. Although the market had held various views on the timing and pace of rate hikes, the minutes revived the debate over acceleration.