BOJ Policymakers Eye Faster Rate Hikes Amid Inflation Concerns

The Bank of Japan (BOJ) may accelerate its interest rate hikes to combat inflationary pressure, according to a summary of opinions at its September meeting. Some policymakers saw the need to bring the policy interest rate closer to the central bank's goal soon, allowing for a faster response to unexpected economic developments.

Most of the opinions cited the need for further rate increases after the BOJ raised rates to 1.25%, a 31-year high, in September. One member was quoted as saying, 'If signs of an upward deviation in prices are observed, the Bank will need to accelerate the pace of rate hikes.'

The BOJ's focus on inflation risks is heightening expectations for another rate hike this year, with some analysts predicting a move in October or December.

However, not all members agreed on the need for further rate hikes. Two doves, Toichiro Asada and Ayano Sato, dissented from September's rate-hike decision, warning of lackluster consumption and subdued growth in services inflation as reasons to stand pat on policy.