BOJ Hesitates on Further Rate Hikes Amidst Internal Divisions

The Bank of Japan (BOJ) is hesitant to continue rapid interest rate hikes due to internal divisions and concerns over weak private consumption, according to a recent report by Rabobank Research Global Economics & Markets.

The BOJ's September meeting notes revealed that some officials were against further hikes, while others warned against hasty action, as government representatives urged weighing the cumulative impact of past rate increases.

The report noted that with the latest Tankan survey showing large manufacturers' sentiment improving for the first time since 2018, the BOJ may not have a choice but to continue raising rates, despite its internal reservations.