BOJ Debaters Weigh Price Risks After June Rate Hike
The Bank of Japan (BOJ) board members debated the risks of mounting prices even after hiking interest rates in June, according to minutes from the meeting. The BOJ raised its policy rate to a 31-year high of 1% at the time due to rising fuel costs and inflationary pressures.
The minutes showed that some board members believed consumer inflation would likely increase significantly in the latter half of the current fiscal year as companies plan price hikes for various goods. Two of the eight board members suggested faster interest rate hikes to push the BOJ's policy rate closer to a level deemed neutral to the economy.
The BOJ governor, Kazuo Ueda, was absent from the meeting as he had been hospitalized. The decision to raise interest rates in June was made amidst rising fuel costs from the Middle East conflict and a weak yen contributing to inflationary pressures.