Bank of Japan summary signals growing hawkish policy view

The Bank of Japan published a summary of its January 22-23 meeting on Monday showing that policymakers debated mounting price pressures from a weak yen. The summary indicated a growing hawkish view among the nine members of the board which may keep alive market expectations for a near-term interest rate increase in Japan JP.

At the January meeting, some board members expressed the belief that risks to the price outlook were skewed to the upside due to steady wage gains and hopes for a recovery in overseas growth. Rising import prices resulting from a weak yen were also cited as a significant factor. One opinion described the current state of inflation in Japan JP as becoming sticky, while another warned that further yen declines could prevent inflation from moderating.