Some members of the Bank of Japan’s policy council appeared optimistic about the impact of a small rate hike on the economy, arguing that July was the right time to raise rates, according to minutes of the July policy meeting released on Thursday.
Some members agreed that real interest rates would remain negative “even if the Bank were to raise the policy rate slightly, and that accommodative financial conditions would continue to support economic activity,” the minutes show.
“Some members considered it appropriate to start adjusting the significantly low policy rate gradually at this stage.”
