BOJ Policymakers Mull Further Rate Hikes Amid Inflation Concerns

The Bank of Japan's (BOJ) policymakers are considering further rate hikes to stabilize long-term interest rates, which have surged due to inflation concerns. According to the minutes of their June meeting, multiple members called for continuing rate hikes, citing the weaker yen and rising import costs.

At the June 15-16 meeting, the BOJ raised its key policy interest rate to a 31-year high of 1.0 percent from 0.75 percent, as it tackles inflation risks. The policymakers discussed the future policy path amid concerns over Japan's fiscal health and inflation, driven by the war in Iran.

The BOJ's views signal their intention to respond to rapid surges in Japanese long-term rates. Some members attributed the recent rise in long-term interest rates mainly to heightened inflation concerns stemming from the Middle East situation.