The minutes of the Bank of Japan's June policy meeting released on Wednesday show that most members believe there is an upward risk of potential inflation. The minutes of the June 15-16 meeting also showed that the Commission plans to continue to raise interest rates if economic and price trends are in line with the outlook. One member said that the benchmark interest rate needs to be raised to a level closer to neutral as soon as possible. Note: According to the Bank of Japan's estimates, the neutral interest rate is between 1.1% and 2.5%. One member said that interest rate hikes should be considered every few months; a government representative said that it is expected that the central bank will properly implement monetary policy based on understanding Prime Minister Takaichi Sanae's growth measures; one member pointed out that if the purchase of Japanese treasury bonds is seen as aimed at reducing long-term interest rates, it may have a negative impact on the central bank's reputation; some members said that it should be clarified that the suspension of measures to reduce the size of Japanese treasury bond purchases is not due to financial considerations.

The minutes of the Bank of Japan's June policy meeting released on Wednesday show that most members believe there is an upward risk of potential inflation. The minutes of the June 15-16 meeting also showed that the Commission plans to continue to raise interest rates if economic and price trends are in line with the outlook. One member said that the benchmark interest rate needs to be raised to a level closer to neutral as soon as possible. Note: According to the Bank of Japan's estimates, the neutral interest rate is between 1.1% and 2.5%. One member said that interest rate hikes should be considered every few months; a government representative said that it is expected that the central bank will properly implement monetary policy based on understanding Prime Minister Takaichi Sanae's growth measures; one member pointed out that if the purchase of Japanese treasury bonds is seen as aimed at reducing long-term interest rates, it may have a negative impact on the central bank's reputation; some members said that it should be clarified that the suspension of measures to reduce the size of Japanese treasury bond purchases is not due to financial considerations.