MNI: BOJ Minutes: More Than Two Members Positive On Hike

One Bank of Japan board member, apart from the two who proposed raising the policy rate to 0.75%, said it was time to consider another increase as more than six months had passed since the last hike, minutes of the Sept 18-19 meeting showed Wednesday.

However, the member noted that uncertainty remained over the pace of the U.S. economic slowdown and said it was appropriate for the Bank to maintain its current policy stance for the time being. 

Two other members said they were positively considering a rate hike, though not immediately.

One member pointed out that “one characteristic of Japan's economy was that domestic demand tended to be vulnerable to negative external shocks” and added that “in the process of normalising the policy interest rate, it would not be too late even if the Bank made decisions after assessing a little more hard data.”

A different member said that while “the conditions needed for raising the policy interest rate were gradually being met,” a hike at this stage “should be avoided, given that the U.S. economy could enter a deceleration phase.”

Another member emphasised that it was important to confirm whether the trend of wage hikes seen over the past few years would continue, based on factors such as corporate profits and early information from the 2026 annual spring labour-management wage negotiations.

One member also noted that although waiting for more clarity on the U.S. economy could provide additional insight, “the costs of waiting would gradually increase for prices in Japan,” and said it was necessary to weigh the costs and benefits of such a delay.