The Bank of Japan is considering a steady interest rate hike

According to Odaily, a summary of the views at the Bank of Japan’s policy meeting on 12/29 shows increasingly clear discussions about cautiously tightening monetary policy. A board member suggested that the central bank should consider raising interest rates at regular intervals, perhaps every few months, over a certain period. This approach aims to normalize monetary policy in a controlled and predictable manner while closely monitoring the economy’s response and inflation.

The member emphasized that even if the operating interest rate is raised to 0.75%, Japan’s real interest rate will remain deeply negative after inflation adjustments. This indicates that the rate hikes are not strongly tightening but mainly steps to reduce excessive easing and reflect concerns about long-term risks to financial stability.