BOJ board discussed at January meeting likelihood of more rate hikes, summary shows

TOKYO : Bank of Japan policymakers discussed the likelihood of raising interest rates further with some warning of upside inflation risks and the damage a weak yen could inflict on the economy, a summary of opinions at their January meeting showed on Monday.

"Real interest rates are expected to remain significantly negative even after this month's rate hike," one member was quoted as saying.

"If economic activity and prices remain on track, it will be necessary to continue hiking rates accordingly, so that the negative range of real interest rates will shrink," the member said.

Another opinion showed a member saying it was appropriate to continue raising interest rates to prevent further yen declines and an "overheating of financial activities," the summary showed.

At the Jan. 23-24 meeting, the BOJ raised its short-term policy target to 0.5 per cent from 0.25 per cent and revised up its price forecasts, underscoring its confidence that rising wages will keep inflation stably around its 2 per cent target.