TOKYO - Several Bank of Japan policymakers have signaled support for accelerating interest rate increases, with one member warning that the pace of hikes could become faster than financial markets currently expect as the central bank pays greater attention to upside inflation risks.
The BOJ on August 10 released a summary of opinions from its July monetary policy meeting, revealing growing concern among policymakers that inflation could exceed expectations.
One member said the central bank needed to pay more attention than before to the risk of inflation overshooting its projections, adding that "the pace of interest rate hikes could become faster than the market expects."
Several other members also pointed to a change in the economic and inflation environment and argued that the BOJ should not be constrained by any predetermined pace of rate increases.
One opinion said policymakers needed to discuss future moves without being tied to a fixed pace of rate hikes, while another said it was necessary to accelerate the adjustment of the degree of monetary easing.
The comments indicated that multiple members were increasingly open to raising rates more quickly if economic and price developments warrant such action.
At its July monetary policy meeting, the BOJ decided to keep its policy interest rate unchanged at around 1%.
Source: テレ東BIZ
