The Bank of Japan debated the likelihood of a near-term rate hike in June, with one policymaker calling for an immediate increase to address the risk of inflation exceeding expectations, a summary of the meeting showed on Monday.
The discussion highlights the board’s growing awareness of rising inflationary pressures in the world’s third-largest economy, which could prompt the BOJ to debate raising interest rates as early as its next policy meeting on July 30-31.
The yen’s recent declines have raised the possibility of an upward revision to the BOJ’s inflation forecasts, meaning the appropriate level of policy rates could move higher, a member said at the June 13-14 policy meeting.
