BOJ Members Suggest Rate Hikes Every Few Months Amid Inflation Risks

The Bank of Japan (BOJ) June meeting minutes revealed that multiple policy board members proposed raising interest rates at a pace of 'every few months' to curb upside inflation risks.

Even after hiking the policy rate to around 1.0%, the highest level in 31 years, the BOJ maintained that financial conditions remain accommodative, necessitating further tightening.

The members shared concerns that rising crude oil prices due to the Middle East conflict pose a risk of pushing inflation beyond expectations.

One member pointed out that 'it is desirable to consider raising rates at a pace of once every few months,' while another argued for bringing the policy rate closer to the neutral rate as soon as possible.