The Bank of Japan (BOJ) has indicated its intention to continue raising interest rates if economic and price forecasts align with expectations. This stance was detailed in the minutes from the BOJ’s September meeting, released on November 6, 2024.
During the meeting, the nine-member board agreed to closely monitor the economic impact of overseas uncertainties and volatile financial markets. Some members emphasized the need to assess the effects of the yen’s recent appreciation, which could reduce inflationary pressures from rising import costs.
At the September meeting, the BOJ maintained its short-term interest rate at 0.25%. Governor Kazuo Ueda signaled a cautious approach to further rate increases, citing concerns over a potential U.S. recession and an uncertain global economic outlook.
The minutes also revealed differing opinions among board members. One member suggested postponing rate hikes until external uncertainties diminish, while another highlighted the importance of focusing on downside economic risks when setting monetary policy. Conversely, a member noted that raising rates could be appropriate even amid market instability, depending on the economic and price outlook.
These discussions underscore the BOJ’s commitment to data-driven policy decisions, balancing the need to support economic growth with the goal of achieving its 2% inflation target. The central bank remains vigilant, ready to adjust its monetary policy in response to evolving economic conditions.
