BOJ Policymakers Debated Faster Rate Hikes Amid Government Caution
The Bank of Japan (BOJ) debated speeding up interest rate hikes in September, but the government urged caution, according to a summary of opinions from its policy meeting.
Some BOJ policymakers believed that further rate increases were necessary to combat inflationary pressure, with one member stating that if signs of upward price deviation are observed, the bank should accelerate the pace of rate hikes.
The September meeting saw the BOJ raise rates to a 31-year high of 1.25 percent, with Governor signaling a new phase focused on keeping inflation from overshooting its target.
A government representative at the meeting urged the BOJ to examine carefully the cumulative effects of past interest rate hikes and consider its estimates of the neutral rate in further decisions.