The Economic Information Agency reported on the 28th that the Bank of Japan (BOJ) released on Monday the minutes of its meeting held on July 30-31, showing that members of the BOJ's Policy Board unanimously agreed that it is appropriate to continue raising the benchmark interest rate under current economic, inflation, and financial conditions.

The minutes indicated that members unanimously believed the underlying inflation rate is approaching the 2% target and that financial conditions remain relatively accommodative. One member stated that the pace of rate hikes could be faster than the market expectation of roughly every six months. Another member noted that global central banks have entered a rate-hiking phase, so the BOJ needs to adopt a flexible strategy and discuss the magnitude of rate increases.

Government representatives attending the meeting emphasized that monetary policy must be appropriately implemented to achieve stable inflation, which is crucial.

*Kazuo Tobira: BOJ may raise rates again in October*

Additionally, Kazuo Tobira, former executive director of the BOJ, believes the central bank may raise rates again at its October policy board meeting. In an interview, he said: "The basic rhythm might be once every three months, but there's also a considerable chance the BOJ could raise rates at two consecutive meetings, estimated at around 20% to 30%."

He added: "The BOJ has been emphasizing very strongly that there is a risk of core inflation exceeding 2%. Given this, I don't think this risk will weaken over the next three months. If anything, this risk is more likely to increase." (rc)