BOJ July Minutes Show Growing Hawkish Shift Preceding September Rate Hike

Bank of Japan minutes from the July 30–31 meeting showed policymakers laying the groundwork for tighter monetary policy prior to their September rate increase to 1.25%. During the July meeting, the Policy Board voted 8–1 to keep the key overnight rate steady near 1.0%, defeating member Hajime Takata's dissent proposing an immediate hike to 1.25%. Members agreed underlying inflation was nearing the 2.0% target and warned market expectations of six-month hike intervals might be too slow. Markets now await the September meeting's Summary of Opinions on October 1.