BOJ Summary of Opinions Shows Growing Push for Faster Rate Hikes

Bank of Japan policymakers are pushing to accelerate interest rate hikes after underlying inflation reached its 2% target, according to the October meeting Summary of Opinions. At the October 29–30 meeting, the BOJ held its key rate steady at 1.25%, but several members urged a swift move toward neutral, with one estimating the neutral rate considerably above 1.0%. Others warned that current rates may already sit within the neutral range amid fragile domestic demand, evidenced by a 6.8% year-on-year drop in September household spending. Markets increasingly anticipate a potential rate increase to 1.5% in December.