Upside Risks to Prices More Key to BOJ Policy Decisions: Minutes

Tokyo, Sept. 26 (Jiji Press)--Some members of the Bank of Japan's Policy Board during the July 30-31 meeting said that upside risks to prices carry more weight in the central bank's policy decisions, minutes of the meeting showed Thursday.

In the meeting, the BOJ decided on an additional interest rate hike, raising its policy interest rate target to around 0.25 pct from the previous range of around zero to 0.1 pct.

"A few members expressed the opinion that, with the year-on-year rate of increase in the CPI (consumer price index) exceeding 2 pct for more than two years, upside risks to prices played a more important role in the bank's policy decisions," the minutes noted.

According to the minutes, several members pushed for an interest rate hike, saying that it would be "appropriate" for the central bank to "start gradually adjusting the significantly low policy interest rate."

A member voiced caution against bad effects of rising prices, saying that the central bank needs to "pay attention to the impact that price rises due to the yen's depreciation had on costs for small and medium-sized firms and on household sentiment."

[Copyright The Jiji Press, Ltd.]