The summary, which doesn’t disclose who made the comments, noted that one member said authorities had entered a new phase of policymaking aimed at keeping inflation from exceeding the 2% target. That comes after 13 years in which the bank has sought to gradually lift price growth toward that level.
Another member cited the need to conduct policy to avoid excessive inflation, according to the summary from the September 17-18 meeting that was released Thursday.
Governor Kazuo Ueda’s board voted 7-2 to raise borrowing costs to 1.25% at the gathering. The move came three months after the previous increase in June, making it the shortest interval between hikes since 1990.
The summary of opinions allows the BOJ to highlight key comments, and the latest report appears consistently hawkish — apart from views likely made by dissenters. Among other comments, members noted that the neutral rate could deviate above the estimate, many firms see only limited impact of hikes taken so far and it’s desirable to bring the benchmark rate higher at an early stage. The summary is likely to boost speculation over another hike this year.
Before the release of the summary, swap contracts implied traders saw more than a 95% chance of another hike by December, with around a 21% chance of an increase when the board next sets policy on Oct. 30.
A Cabinet Office representative, likely Minoru Kiuchi, economic policy minister, said the board should monitor the impact of rate hikes undertaken already.Also Read: Micron shares waver in extended trade despite strong Q4 results, Q1 guidance