Some Japan central bank members press for faster rate increases

Some Bank of Japan policymakers argued for a quicker pace of interest rate increases at their October meeting, according to a summary of opinions released on November 10. The discussion points to pressure within the board to move borrowing costs higher, but it is not a fresh decision to raise rates.

The central bank left its key rate unchanged at 1.25% at the October 29-30 meeting. Its latest summary records views expressed during that discussion rather than announcing another policy meeting or an immediate change for borrowers.

One member argued that financial conditions remained supportive and that the effects of earlier increases had yet to be fully felt. That member said the bank should speed up its move towards a neutral rate, a level intended neither to stimulate nor restrain the economy.

Two other opinions from the nine-member board also called for reaching a neutral level soon. The comments came as policymakers assessed underlying inflation as having reached the bank's 2% target and flagged risks that price growth could be stronger than expected.

The summary therefore shows a debate about the timing and pace of further tightening. It does not establish an agreed timetable for another increase, and the unchanged October rate remains distinct from individual members' preferences.