Bank of Japan minutes show many policymakers saw inflation risks, with some urging faster rate hikes. One member said underlying inflation had approached 2%; the central bank held rates at 1% in July before raising them to 1.25% in September.
One policymaker said markets appeared to expect rate increases roughly every six months, but argued hikes could come faster because underlying inflation had approached 2% and upside price risks needed more attention. Another urged nimble adjustments; a third said the risk of waiting was no longer marginal and warned of huge economic damage if inflation risks materialized.
The minutes described a gradual shift toward anchoring underlying inflation around the BOJ’s 2% target. The report said the Middle East war and a stubbornly weak yen had lifted fuel and raw-material import prices.
