Business · Economy · 4 hrs ago
BOJ member urges further rate hikes when possible
A Bank of Japan board member urged further rate hikes in a summary of views from the central bank’s October meeting, released Tuesday.
The BOJ says underlying inflation has generally reached its 2% goal after years of efforts to lift prices.
Japan’s core consumer prices rose 2.1% in September from a year earlier, while the BOJ had raised its policy rate to 1.25% from 1.0% in September.
Some board members said the bank should move faster toward a rate that neither stimulates nor slows the economy, arguing that financial conditions remain accommodative.
Others warned that earlier rate increases could weaken economic activity and prices, as Japan faces a choice about whether growth can become self-sustaining.
Markets are watching for a possible December hike, but the BOJ has not announced a decision.
A Bank of Japan board member urged the central bank to raise interest rates when possible without becoming overly cautious.
The view appeared in a summary of opinions from the BOJ’s Oct. 29-30 policy meeting, released Tuesday.
Some members said the BOJ should move more quickly toward a neutral interest rate, while another warned that past hikes could weigh on economic activity and prices.
At the meeting, the BOJ said underlying inflation had generally reached its 2 percent target.
Japan’s core consumer prices rose 2.1 percent in September from a year earlier, government data showed.
- Who
- A Bank of Japan board member urged further rate hikes.
- What
- The member said the BOJ should raise rates when possible without becoming overly cautious.
- When
- The view was expressed at the Oct. 29-30 policy meeting. The summary was released on Nov. 10, 2026.
- Where
- The Bank of Japan’s policy meeting in Japan.
- Why
- The member’s stated rationale was not given. Some members said faster movement toward a neutral interest rate was needed.
Rate-hike advocates
Cautious BOJ member(s)
Rate policy
Rate-hike advocates
A member urged rate hikes when possible without becoming overly cautious.
Cautious BOJ member(s)
Another member warned that past rate hikes could put downward pressure on economic activity and prices.
Pace of adjustment
Rate-hike advocates
Some members said the BOJ should move more quickly toward the neutral interest rate.
Cautious BOJ member(s)
A member raised concern about the potential negative effects of the BOJ’s actions.
The BOJ raised its policy rate to 1.25 percent from 1.0 percent.
The BOJ held a policy meeting and said underlying inflation had generally reached its 2 percent target.
A summary of opinions from the October meeting was released, including a call for further rate hikes when possible.
- Policy rate after September increase
- 1.25 percent, up from 1.0 percent
- October meeting dates
- Oct. 29-30
- BOJ inflation target
- 2 percent
- September core consumer price rise
- 2.1 percent year on year
- Summary release date
- Nov. 10, 2026
2 sources
What people are saying
Financial conditions have remained accommodative.
risk of past policy interest rate hikes exerting downward pressure on economic activity and prices
The Japanese economy is now at a crossroads, where the question is whether it can step onto the path of a virtuous cycle of growth.