Bank of Japan October meeting minutes – more detail

The post on the Bank of Japan October meeting minutes is here:

• BoJ Oct minutes: If inflation trends align with expectations, gradual rate hikes possible

Adding a little more detail now, these Headlines via Reuters:

• A few members said must scrutinize the impact of past interest rate hikes on the economy and prices when deciding policy.
• One member said must take time and be cautious in deciding on the next rate hike timing.
• One member said BOJ can spend time gauging economic and price developments if it were to hike rates in several stages to 1.0% as soon as the latter half of fiscal 2025.
• Members shared the view BOJ will keep raising rates if the economy and prices move in line with its forecast.
• One member said it was desirable to gradually raise rates if underlying inflation accelerates as projected.
• One member said market rates could be lower than levels considered appropriate based on BOJ’s economic and price projections and its guidance on monetary policy.
• One member said it was hard to indicate with confidence BOJ’s medium- and long-term rate hike path due to uncertainty over Japan’s neutral rate level and the transmission mechanism of monetary policy.
• MOF representative said the government will guide economic and fiscal policy, prioritizing pulling Japan out of deflation, and hopes BOJ continues to guide policy appropriately in close coordination with the government.
• Members agreed Japan’s consumption is likely to continue increasing moderately.
• A few members said wage growth is likely to remain elevated in next year’s spring wage negotiations.

Nothing too surprising here.

USD/JPY is not doing much after the release, circa 157.20.

There are some expecting a rate hike at the Bank’s January meeting.

This article was written by Eamonn Sheridan at www.forexlive.com.