BOJ Minutes Suggest More Rate Hikes on the Horizon in Japan

The Bank of Japan's (BOJ) June meeting minutes indicate that policymakers are increasingly concerned about inflation spreading beyond energy costs, keeping the door open for another rate hike as soon as September.

The BOJ raised its policy rate to 1% at the June meeting, a 31-year high, due to higher fuel costs and a weak yen. However, the minutes show that some members flagged firms planning price hikes across various goods and business-to-business costs being affected quickly by oil prices.

Central banks worry about self-sustaining inflation, which can stick around even if energy prices cool. A few BOJ members discussed moving rates closer to 'neutral' - a level that neither stimulates nor slows the economy - and one suggested hikes could come faster.