BOJ Flags Rising Inflation Risks and Faster Rate Hikes

The Bank of Japan has flagged rising inflation risks in a summary of opinions from its July meeting. According to the document, one board member expressed concerns about the possibility of an acceleration in interest rate hikes.

Given that underlying Consumer Price Index (CPI) inflation has been approaching 2%, this board member suggested that market expectations for interest rates may be too slow. They also noted that greater consideration should be given to upside price risks than before, which could indicate a faster pace of policy interest rate hikes.