BOJ Summary: One member sees rate hike pace possibly faster than market expectations

Published Aug 10, 02:58 AM UTC

The Bank of Japan (BOJ) released a summary of opinions from its July 30-31 meeting, revealing growing hawkish sentiment among board members. While the BOJ held its policy rate at 1%, one member suggested the pace of rate hikes could be faster than market expectations due to rising upside risks to inflation. Another member called for larger rate hikes to prevent upward inflation deviations. The yen weakened to a 40-year low against the US dollar last month, stoking import-driven inflation concerns. Markets are pricing in a two-thirds chance of a rate hike in September and a 96% probability by October. Governor Kazuo Ueda emphasized greater upside risks to the price outlook, signaling a potential near-term move.