Is the Bank of Japan policy board ‘split’ on when to hike rates again?

Reuters have summarised the minutes and say this divergence is views is a split.

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BOJ Split Over Next Rate Hike Amid U.S. Tariff Uncertainty

Summary:

Bank of Japan policymakers were divided in March on when to raise rates again, as escalating U.S. tariff risks threatened Japan’s economic outlook.

While some called for caution, others argued the BOJ might still need to act decisively despite global uncertainties.

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Key Points:

• BOJ minutes reveal division over the pace of future rate hikes.

• U.S. tariff policies are seen as a key downside risk to Japan’s economy.

• Some BOJ members urge caution in tightening policy further.

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• Others believe decisive action may be necessary regardless of global risks.

• The debate underscores rising pressure on Japan’s monetary strategy.

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I think ‘split’ is too strong a description. I think ‘caution’ and ‘decisive action may be necessary regardless of global risks’ are not, at this time, a split. The overall message from the minutes, and from subsequent BoJ communication, is that there is still time to watch and wait

Is the Bank of Japan policy board ‘split’ on when to hike rates again?

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