At its 17–18 September monetary policy meeting, the BOJ raised the policy rate to approximately 1.25%. The published opinions included a view that the pace of additional rate hikes could accelerate depending on price developments.
At its 17–18 September meeting, the BOJ decided to raise rates for the first time in approximately 3 months. The main opinions of officials included the view that the pace would have to accelerate if signs of rising prices emerged.
Members said the BOJ should respond in a timely manner without becoming excessively cautious in light of upside risks to prices. Some also pointed out that the policy rate should be moved closer to its approximate destination early, creating conditions in which it could be adjusted nimbly in either direction.
Regarding price conditions, the view was expressed that the underlying inflation rate was considerably closer to 2% or had broadly reached that level.
At the September meeting, 7 of the 9 members, comprising the governor, deputy governors, and policy board members, voted in favor of the rate hike, while 2 voted against it.