FILE PHOTO: Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. REUTERS/Issei Kato/File Photo

BOJ policymakers agreed to keep raising interest rates, Sept meeting minutes show

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TOKYO :Bank of Japan policymakers shared the view that the central bank will keep raising interest rates if its economic and price forecasts are met, minutes of their September meeting showed on Wednesday.

The nine-member board also agreed that the BOJ's near-term focus should be to scrutinise the economic fallout from overseas uncertainties and unstable financial markets, the minutes showed.

"A few members said the BOJ can afford to spend time scrutinising the fallout from overseas and market developments," as the yen's recent rebound would reduce inflationary pressure from rising import costs, according to the minutes.

At the September meeting, the BOJ kept interest rates steady at 0.25 per cent, and its governor signalled it was in no rush to raise borrowing costs further as fears of U.S. recession kept markets jittery and clouded the global economic outlook.

One member said the BOJ should hold off on raising rates until overseas and market uncertainties diminish, the minutes showed.

Another member also called for the need to focus on downside risks to the economy, in setting monetary policy.

But one member said the BOJ "could find it appropriate to raise rates even when markets are unstable, depending on the economic and price outlook," the minutes showed.

Source: Reuters

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