The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Thursday, per the BoJ Minutes of the July meeting.  

Key quotes

Members shared a view over the need for vigilance to the risk of inflation overshoot.

Many members said it was appropriate to raise rates to 0.25%, adjusting the degree of monetary support.

A few members said it was appropriate to adjust the degree of monetary support moderately.

One member said economic conditions were good enough to somewhat push up the current very low policy rate.

One member said they must be vigilant to the impact of rising inflation, driven in part by the weak yen, on household sentiment and small firms' costs.

A few members said it was appropriate to gradually adjust very low rates now to avoid being forced to hike rates rapidly later.

One member said the BOJ must adjust the degree of monetary support further if the strength of capital expenditure and wage growth could be confirmed.

One member said they must carefully look at various risks in proceeding with monetary normalisation.

One member said BOJ must avoid creating too much market expectation of future rate hikes as inflation expectations have yet to be anchored at 2%