The Bank of Japan (BOJ) released minutes from its September board meeting, revealing that some policymakers believe the central bank may need to raise interest rates more quickly if inflation continues to rise.
During the September meeting, the majority of board members voted to increase the policy rate from around 1 percent to around 1.25 percent. This rate hike, the first since June, was implemented at a faster pace than previous adjustments.
One policymaker noted that Japan's economy has shown more resilience than expected, despite ongoing tensions in the Middle East. Another official referenced rate hikes by central banks in the US and Europe, suggesting that the BOJ should adopt a flexible approach in response to global financial changes.
Looking ahead, one board member emphasized the need for the BOJ to accelerate rate increases if signs of rising inflation emerge. Another member argued that the bank should act decisively to avoid being overly cautious, given the potential risks of rising prices.
In October, BOJ Governor Ueda Kazuo stated that the underlying inflation rate had reached the bank's 2 percent target, stressing the importance of maintaining stability around that level.