The Bank of Japan (BoJ) board members believed the chances of reaching the 2% inflation target were increasing, according to minutes from their January meeting released Tuesday.
Some warned that inflation could exceed 2%, while others noted real interest rates would stay deeply negative even after a rate hike.
One member suggested that if underlying inflation kept rising, the BoJ should gradually raise interest rates. Another said adjusting policy would be necessary to prevent the yen from weakening and financial markets from overheating. Discussions also touched on the importance of balancing monetary policy to support economic stability while managing inflation risks.
