At the Bank of Japan's July meeting, several members referred to accelerating the pace of rate hikes as underlying inflation approached 2%, while some also pointed to signs of a shift in the conduct of monetary policy.
The Bank of Japan released the main opinions from its policy meeting held on 30-31 July. The meeting indicated that the policy rate would be held at 1% by a majority vote.
Following the meeting, some members said greater attention should be paid to upside inflation risks as underlying inflation approached 2%. They also expressed the view that, depending on economic, price and financial conditions, the pace of rate hikes could accelerate more quickly than markets anticipate.
Several members said discussions on the size of rate increases should move forward in order to respond to the global rate-hiking cycle, while also responding flexibly to shifts in financial conditions overseas.
Some members explained that if upside risks to prices materialized, the resulting impact on the economy and people's livelihoods would be substantial, and that the risk of waiting had now diminished, making it necessary to adjust the degree of monetary easing.