BOJ Worried About Rising Inflation Despite Rate Hikes

Bank of Japan policymakers debated mounting price risks even after raising interest rates to a 31-year high in June, minutes from the meeting showed. The central bank's focus on broadening inflation has increased.

The BOJ raised borrowing costs to 1% at the June meeting as rising fuel costs from the Middle East conflict added to inflationary pressures from a weak yen and tight job market.

According to the minutes, a few board members said consumer inflation will likely get a significant boost in the latter half of the current fiscal year as firms plan price hikes for a wide range of goods. Even if oil prices decline, inflationary pressure would remain due to high costs associated with shipping and storage.