BOJ policymakers signal scope for faster interest rate hikes

The Bank of Japan (BOJ) is likely to continue raising interest rates, with some policymakers signalling the possibility of accelerating the pace of monetary tightening if inflationary pressures intensify, minutes of its September meeting showed on Thursday, according to Reuters.

One policymaker indicated that the central bank may need to speed up rate hikes if prices show signs of rising more than expected, the minutes showed. Another member said the BOJ did not need to take hasty action but should adjust its monetary policy appropriately to prevent excessive and persistent price increases, Reuters reported.

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The discussions highlight growing support within the central bank for further monetary tightening as policymakers seek to keep inflation under control and prevent it from overshooting the BOJ's 2% target.

At its September meeting, the BOJ raised its benchmark interest rate to 1.25%, the highest level in 31 years, and signalled a shift in its policy approach towards preventing inflation from exceeding its 2% target.

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The minutes suggest that policymakers remain focused on the inflation outlook and are prepared to consider a faster pace of interest rate increases if price pressures prove stronger than anticipated, Reuters reported.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)