A post by @FirstSquawk on X.
BOJ MINUTES SHOW ONE MEMBER SAID THAT IF SIGNS OF AN UPWARD DEVIATION IN PRICES WERE OBSERVED, THE BANK WOULD NEED TO ACCELERATE THE PACE OF RATE HIKES, AND THAT IT WAS IMPORTANT TO DEMONSTRATE THE BOJ’S DETERMINATION TO PREVENT UPWARD…
@FirstSquawk on X
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Bank of Japan minutes revealed that at least one policy board member argued the central bank must be ready to accelerate the pace of rate hikes if prices show signs of deviating upward from forecasts, stressing the need to demonstrate the BOJ's determination to contain such deviations through a nimble policy response. The comment signals that the board is weighing upside inflation risks more explicitly, even as the bank has so far moved gradually. It matters because it hints at a faster tightening path than markets may currently price, which would support the yen and pressure Japanese government bonds. Traders will watch upcoming inflation and wage data, along with BOJ communications, for confirmation that this more hawkish view is gaining traction on the board.
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Bank of Japan