Tokyo, Sept. 28 (Jiji Press)–Calls to speed up interest rate hikes were expressed at the Bank of Japan’s July 30-31 policy-setting meeting amid rising inflation risks, minutes showed on Monday. According to the minutes, a BOJ Policy Board member said that the risk of waiting could no longer be considered marginal. The member emphasized the need for the central bank to accelerate the pace of adjusting monetary accommodation. After keeping interest rates unchanged at the July meeting, the BOJ decided at its next policy-setting meeting this month to raise its policy interest rate to 1.25 pct. This decision came about three months after the previous rate hike in June, marking the shortest interval during Governor Kazuo Ueda’s tenure. During the July meeting, many Policy Board members said that underlying inflation, excluding temporary factors, was approaching 2 pct and that it would be important to determine whether it would settle around that level. One member said that gradually adjusting the degree of monetary accommodation would prevent rapid interest rate hikes in the future and benefit all economic entities in the long run. Meanwhile, a member voiced concern that further yen depreciation could intensify inflationary pressure. END [Copyright The Jiji Press, Ltd.]
