BOJ Rate Hike Pace Could Speed Up as Inflation Nears Target
The Bank of Japan's latest policy meeting pointed to a possible acceleration in interest rate hikes, with at least three board members saying the central bank could raise rates faster than its current pace.
The comments appeared in the BOJ's summary of opinions from its July 30-31 meeting, released Monday, after policymakers kept the benchmark rate at 1%.
BOJ Officials Shift Focus Toward Inflation Risks
The latest comments suggest growing support for a faster tightening cycle within the nine-member policy board. One member argued that the BOJ should give greater weight to upside price risks than it previously did.
"Given that underlying CPI inflation has been approaching 2% and greater consideration should be given to upside risks to prices than before, it could be considered that the pace of policy interest rate hikes will be faster than market expectations," the member said.
Another member argued that the pace of adjustment should be accelerated to the degree of monetary accommodation.
"The risk of โwaiting is no longer marginal," the member stated.
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