A recent meeting summary from the Bank of Japan indicates that some of its policymakers are urging the central bank to accelerate the normalization of its interest rate policy. One official in the report stated that the BoJ must move its policy rate to a neutral level soon, citing that underlying inflation has reached the target of 2%, while another board member argued that rates should be raised when feasible without “excessive caution.”

The hawkish lean of these board members differs from the stance of Governor Kazuo Ueda, who has previously noted that inflation of 2% is not yet a “social norm” and expressed uncertainty over whether such price growth has been structurally achieved. Despite those concerns, other members mentioned in the summary said it remains appropriate to continue raising rates as price levels move toward the bank’s target.