TOKYO: Bank of Japan policymakers agreed in October to keep raising interest rates if the economy moves in line with their forecast, but some stressed the need for caution due to the uncertain outlook, minutes of the meeting showed on Tuesday (Dec 24).
The central bank left interest rates steady at 0.25 per cent at the Oct 30-31 meeting but projected inflation to move around its 2 per cent target in the coming years, signalling that it was on track to hike borrowing costs in the near-term horizon.
The nine-member board shared the view that the BOJ would continue to raise interest rates if its economic and price projections are met, the minutes showed.
But many members also stressed the need to continue scrutinising risks surrounding overseas economies, including that of the United States, and still-unstable markets.
“We must guide monetary policy cautiously given heightening uncertainty at home and abroad,” one member was quoted as saying in explaining why the BOJ should stand pat in October.
The BOJ kept rates unchanged at a subsequent meeting in December to await more data on whether wages would retain their upward momentum next year, and to gain more clarity on US president-elect Donald Trump’s policies.