BOJ Open to Rate Hikes as Growth and Inflation Hold: June Minutes

The Bank of Japan will raise interest rates further if economic growth and inflation progress as expected, according to minutes from its June meeting. Most members favored holding rates steady for now, citing uncertainty over U.S. trade tariffs, while one member even supported keeping rates unchanged indefinitely due to concerns over slowing growth and inflation. However, the majority, including Governor Kazuo Ueda, backed the idea of future hikes, anticipating medium-term improvements in the economy. This stance was echoed in the July meeting, where the BOJ kept rates at 0.5% but signaled openness to hikes if inflation and growth strengthen. Inflation has been driven by rising food costs, especially rice, and stronger wages, which have boosted consumer spending. The BoJ also outlined a gradual tapering of bond purchases from 2026 due to persistent economic uncertainty.