BOJ discussed the chances of high appeal rates, the July summary appears

By playing Kihara

Tokyo policymakers (Reuters) -Japanese Policy Policy Bank discussed the possibility of interest rates, one increase by one indicating an opportunity to rise this year, and showed a summary of opinions at the July meeting, which increased the opportunity to increase the high borrowing costs.

While many members of the Board of Directors warned of the uncertainty of the repercussions of the American definitions, one of them welcomed the Japanese commercial deal with the United States as a “great progress” that has increased the possibility of achieving BOJ’s expectations.

Some in the Board of Directors also warned of the escalation of inflationary pressure in the tilt of sincerity, which confirms an increased view within the central bank that the conditions for raising low price costs in Japan may decrease in the coming months.

“It seems that the balance inside the council tends more than hawks,” Daiwa Securities wrote in a research note.

At a meeting 30-31 July 31, BOJ has kept fixed prices at 0.5 %, but she reviewed inflation expectations and offered a less depression of the economy, while maintaining market expectations alive to raise this year.

BOJ needed “at least two months to three months” to assess the impact of the American tariff, adding that the influence on the Japanese economy may remain “minimum” if the American economy withstands success better than thought in the beginning.

“In this case, it may be possible for the bank to get out of its current position to wait and make, perhaps early in the end of this year,” the member, whose identity has not been revealed, said.

A few others in the council consisting of nine members indicated the possibility of resuming high interest rates.

BOJ should continue to raise prices when it is possible because the policy rate, at 0.5 %, is less than the levels that are neutral for the economy, adding that the bank should not become excessively cautious and “miss the opportunity” for hiking.

“It is important to raise the rates in time” to avoid forcing him to hike quickly at a later time and cause severe damage to the economy, and another opinion has shown.

The hawks signals were weighted on Japanese government bonds (JGB), with the rise in the 10 -year memorandum of 0.5 basis points to 1.49 % on Friday.

The summary showed that some policies that warned some of the increasing inflationary risks, as one said that BOJ “now at a stage needs to focus more on the upward risks on prices.”

“It seems that inflation expectations have reached 2 %, and there is concern that they would rise more,” another opinion showed, adding that Japan may meet the BOJ price number earlier than expected.