BOJ Board Discusses Accelerating Rate Hikes Amid Rising Inflation Risks

The Bank of Japan's board discussed accelerating interest rate hikes at their July 30-31 meeting due to growing inflation risks, according to meeting minutes.

At its July meeting, the central bank maintained the rate at 1%, but many board members emphasized that they are shifting focus from stimulating price growth to keeping underlying inflation close to the 2% target.

One board member noted that markets expected rate hikes roughly once every six months, but another suggested that the pace could be faster than anticipated due to rising underlying inflation and increasing risks of further price growth.

The Bank of Japan has been cautious in its approach, raising rates only twice this year, but with the rate now at 1.25%, a 31-year high, some members are urging more decisive action.