BoJ Policymakers Back Faster Rate Hikes Amid Inflation Fears

Bank of Japan (BoJ) policymakers have expressed growing support for further interest-rate hikes, with some calling for faster increases to address persistent inflationary pressures.

In a summary of opinions from their September meeting, BoJ policymakers noted that underlying inflation had reached or was nearing the 2% target, and warned of continued price pressures.

Some members suggested that if prices show signs of exceeding their outlook, the central bank should accelerate tightening. Others argued that rates should move closer to the neutral level to preserve room to respond to economic shocks.

The BoJ raised its policy rate to 1.25% in September, with Governor signaling a greater focus on preventing inflation from overshooting the target amid elevated crude oil prices and Middle East tensions.