BOJ Members Urge Faster Rate Hikes Amid Rising Inflation Concerns

At its July policy-setting meeting, the Bank of Japan's (BOJ) members called for faster interest rate hikes amid rising inflation risks. According to the minutes released on Monday, a Policy Board member emphasized the need for the central bank to accelerate the pace of adjusting monetary accommodation.

The BOJ had kept interest rates unchanged at the July meeting, but decided to raise its policy interest rate to 1.25% at its next policy-setting meeting in September. This decision marked the shortest interval between rate hikes during Governor Kazuo Ueda's tenure.

Many Policy Board members expressed concerns that underlying inflation, excluding temporary factors, was approaching 2%, and it would be essential to determine whether it would settle around that level.