The post on the minutes of the Bank of Japan's October meeting is here:
Adding a little more detail now, these headlines via Reuters:
- A few members said that the impact of rising interest rates on the economy and prices must be examined when making policy decisions.
- One member said that time must be taken and care must be taken in deciding the next rate increase.
- One member said the BOJ may spend time gauging economic and price developments if it were to raise rates in multiple steps to 1.0% as soon as the second half of fiscal 2025.
- Members believed that the BOJ would continue to raise rates if the economy and prices move in line with its expectations.
- One member said it was desirable to gradually increase rates if core inflation accelerates as expected.
- One member said market rates could be below levels considered appropriate based on the BOJ's economic and price projections and its monetary policy guidance.
- One member said it was difficult to indicate with confidence the BOJ's medium- and long-term rate hike path due to uncertainty about Japan's neutral rate level and the monetary policy transmission mechanism.
- The MOF representative said that the government will lead economic and fiscal policy, giving priority to pulling Japan out of deflation, and he hopes that the BOJ will continue to lead policy. appropriate in close coordination with the government.
- Members agreed that Japan's consumption is likely to continue to increase moderately.
- A few members said a salary increase is likely to remain in next year's spring salary negotiations.
Nothing too surprising here.
USD/JPY is not doing much after the release, around 157.20.
Some expect a rate hike at the Bank's meeting in January.
