The Bank of Japan released the main opinions from its September meeting. While maintaining its rate-hike stance, some members said the pace should be accelerated depending on price trends. The market is watching the pace ahead, with another rate hike within the year in view.
The Bank of Japan released the main opinions from its Monetary Policy Meeting held on 17 and 18 September. While the opinions indicated a commitment to continued rate hikes, some members said the pace would have to be accelerated if signs of rising prices emerged.
Some of the published opinions said the pace of rate hikes should be accelerated if signs of an upside surprise in prices became apparent. Others acknowledged the importance of keeping the neutral interest rate in mind but said policy should not become excessively cautious given the risk of rising prices.
On the other hand, some members said a rate hike at this time would not be appropriate if the economy and prices were accelerating sharply. The market expects that another rate hike could take place within the year and is closely watching the pace ahead.