Some Policymakers In BoJ Called for Keeping Rates Low for Now

• Some Bank of Japan (BoJ) policymakers called for keeping interest rates steady for the time being due to uncertainty over the impact of U.S. tariffs on Japan's economy, a summary of opinions at the bank's June policy meeting.
• Others in the nine-member board said inflation was moving at higher-than-expected levels, with one saying the BoJ may need to raise interest rates "decisively" at some point, even if economic uncertainty remained high, the summary showed.
• At the June 16-17 meeting, the BpJ kept interest rates steady at 0.5% and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive stimulus.
• "Given high uncertainty, the BoJ should maintain accommodative financial conditions by keeping interest rates steady to support the economy," one member highlighted.
• Several opinions warned of the expected hit to Japan's fragile economy from sweeping U.S. tariffs
• Meanwhile, others saw rising inflationary pressure in Japan, driven in part by surging prices of the country's staple rice, with some saying consumer inflation was accelerating more than expected.

(Source: Reuters)