BOJ discussed whether further rate increases were necessary, according to the summary of the March meeting

BOJ Officials Consider Additional Interest Rate Increases

At a recent meeting, members of the Bank of Japan discussed the possibility of raising interest rates further. Some policymakers suggested that rate hikes could occur at a steady pace or even more rapidly than anticipated, especially as the ongoing conflict in the Middle East pushes oil prices higher and fuels inflation.

One participant at the March policy meeting expressed concern that persistent high energy costs might lead to a period of economic stagnation combined with rising prices—similar to the stagflation Japan faced in the 1970s.

Although the BOJ was cautioned against rushing into rate increases if inflation proves to be temporary, it was noted that a significant depreciation of the yen could intensify cost pressures, potentially requiring a tighter monetary stance.