The Bank of Japan's June policy meeting revealed growing concern among policymakers over persistent inflationary pressures, with several members arguing for a faster pace of interest rate hikes to move borrowing costs closer to a level considered neutral for the economy, according to a summary of the meeting reviewed by Reuters.
The central bank raised its policy rate to 1% at the June 15-16 meeting, the highest level in 31 years, marking another milestone in its policy normalisation. The move also signalled the BOJ's willingness to tighten monetary policy further as it seeks to contain inflationary pressures exacerbated by the energy shock triggered by the conflict in the Middle East.
