BOJ Policymakers Weigh Further Rate Hikes Amid Inflation Concerns
TOKYO, Japan - At the January BOJ meeting, policymakers discussed the possibility of additional interest rate increases. Participants expressed concerns about rising inflation and the impact of a weaker yen on the economy.
One member stated, "Real interest rates are expected to remain significantly negative even after this month's rate hike." They emphasized the need to continue hiking rates to reduce the negative range of real interest rates, contingent on favorable economic conditions and inflation trends.
Another member highlighted the importance of raising rates to prevent further yen depreciation and excessive financial activity.
On January 23-24, the BOJ increased its short-term policy target to 0.5% from 0.25% and revised its inflation forecasts upwards. This move reflects confidence that rising wages will maintain inflation near its 2% target.