BOJ Debated Faster Rate Hikes as Inflation Hit 2% Target
Updated
Updated · Reuters · Nov 10
BOJ Debated Faster Rate Hikes as Inflation Hit 2% Target
3 articles · Updated · Reuters · Nov 10
Summary
October meeting minutes showed several Bank of Japan board members pushing to speed rate increases, with one urging the next hike be delivered “without hesitation” and others calling for a quicker move toward neutral.
The debate was driven by underlying inflation reaching the BOJ’s 2% target, strengthening the case for near-term tightening after the bank held its policy rate at 1.25% on Oct. 29-30.
Some members still warned against moving too fast, citing weak consumption, uncertain AI-driven demand and the risk that past hikes have not yet fully filtered through the economy.
Wage prospects emerged as a key fault line: one member saw next year’s pay growth staying consistent with 2% inflation, while another doubted wage gains would accelerate much further.
Markets now focus on December, with Reuters-polled analysts expecting a hike to 1.5%, while estimates for Japan’s terminal rate cluster around 1.75% to 2%.