Bank of Japan September meeting minutes: If the economy and inflation meet expectations, the central bank will continue to raise interest rates

Zhitong
2024.11.06 01:37
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The minutes of the Bank of Japan's September meeting, released on Wednesday, show that policymakers unanimously believe that the central bank will continue to raise interest rates if its economic and price forecasts are met. The minutes indicate that the board, composed of nine members, also unanimously agreed that the Bank of Japan's recent focus should be on carefully studying the impact of overseas uncertainties and financial market instability on the economy. The minutes state, "Some members indicated that the Bank of Japan has time to carefully examine the effects of overseas and market developments," as the recent rebound of the yen will alleviate inflationary pressures from rising import costs. At the September meeting, the Bank of Japan kept the interest rate unchanged at 0.25%, with the central bank governor suggesting that there is no rush to further increase borrowing costs, as concerns about a U.S. economic recession have made the market uneasy, casting a shadow over the global economic outlook. The minutes reveal that one member stated that the Bank of Japan should postpone interest rate hikes until uncertainties in overseas markets diminish. Another member also called for attention to economic downside risks when formulating monetary policy. However, the minutes show that one member stated that even if the market is unstable, the Bank of Japan "may still consider raising interest rates appropriate, depending on the economic and price outlook."

According to the Zhitong Finance APP, the minutes of the Bank of Japan's September meeting released on Wednesday show that policymakers unanimously believe that if their economic and price forecasts are met, the central bank will continue to raise interest rates.

The minutes indicate that the board, composed of nine members, also unanimously agreed that the Bank of Japan's recent focus should be on carefully studying the impact of overseas uncertainties and financial market instability on the economy.

The minutes show that "some members stated that the Bank of Japan has time to carefully examine the effects of overseas and market developments," as the recent rebound of the yen will alleviate inflationary pressures from rising import costs.

At the September meeting, the Bank of Japan kept the interest rate unchanged at 0.25%, with the central bank governor suggesting that there is no rush to further increase borrowing costs, as concerns about a recession in the U.S. have made the market anxious, casting a shadow over the global economic outlook.

The minutes reveal that one member stated that the Bank of Japan should pause interest rate hikes until uncertainties overseas and in the markets diminish.

Another member also called for attention to economic downside risks when formulating monetary policy.

However, the minutes indicate that one member stated that even if the market is unstable, the Bank of Japan "may still consider raising interest rates appropriate, depending on the economic and price outlook."