BOJ minutes show a debate on rate hikes, with the yen closely watched , Bank of Japan board members discussed the possibility of pursuing a faster pace of policy normalization amid persistent risks that the weak yen’s impact on inflation could force a response from the bank, the report shows. minutes of the April policy meeting.
“Some members pointed out that exchange rates are one of the important factors affecting economic activity and prices, and that monetary policy responses would be necessary” if currencies affect the inflation outlook, including fueling upside risks, the minutes released Wednesday said.
The minutes indicate the potential for a rate hike by the BOJ as early as July, even as market speculation for such a move has cooled somewhat after the bank said last week it would specify next month how it plans to purchase reduce bonds.
