Bank of Japan Meeting Minutes: Growing Calls for Rate Hikes - Will October Be the Time for Action?

　　The minutes revealed that during the monetary policy meeting held on September 18-19, Bank of Japan (BOJ) board members discussed whether interest rates should be raised in the near term. Some members believed the timing for such a move might be approaching—indicating that hawkish forces within the BOJ could be gaining strength.

　　One member stated: "Looking solely at Japan's economic conditions, given that more than six months have passed since the last rate hike, it might be time to consider raising the policy rate again."

　　According to the minutes, as the uncertainty surrounding US tariff policies and other external adverse factors diminishes, the BOJ has room to increase Japan's real interest rates.

　　Another member specifically noted that Japan's current real interest rates remain low by global standards.

　　Although the BOJ ultimately decided to keep the interest rate unchanged at 0.5% in September, two of the nine board members dissented at the time, proposing instead to raise the rate to 0.75%, though this proposal was not adopted.

　　However, given that the meeting minutes suggest strengthened hawkish voices within the BOJ, October might be the timing the committee deems appropriate for a rate hike. Among the nine members, five believed that rate hikes should resume in the foreseeable future, indicating that internal calls for tightening in the short term are expanding.

　　A more explicit signal came from the BOJ's dovish member Asahi Noguchi, who stated in a speech on Monday that the need for a rate hike is "more pressing than ever."

　　Nevertheless, some urged caution. One member expressed that it would not be too late to raise rates after assessing "more hard data" (as Japan's domestic demand is often vulnerable to external shocks).