BOJ's June Meeting Shows Hawkish Tone, Several Members Advocate for Continued Rate Hikes

On June 24, the summary of the Bank of Japan's June policy meeting indicated that even after the rate hike in June, the BOJ needs to maintain a stance for further increases, provided that economic and price trends align with expectations. The opinions from the June meeting reflected a hawkish tone, with several members stating that, given the continued accommodative financial environment and the inflationary pressures exacerbated by rising import costs due to exchange rates, further rate hikes are appropriate. Some members argued that the policy interest rate should quickly approach a neutral level of around 2%, and if the economic and price trends meet the BOJ's expectations, the possibility of further rate hikes remains. Meanwhile, the government urged the BOJ to ensure accountability and respond appropriately to economic fluctuations.