Bank of Japan October Policy Meeting Minutes: Several Members Warn of Inflation Risks

The minutes of the Bank of Japan's October policy meeting show that one committee member stated that inflation expectations among businesses and households have reached 2%, and there is a need to be vigilant about the risk of price increases. One member mentioned that fiscal policy is an important factor in setting economic and price forecasts.

A few members pointed out that core inflation is gradually accelerating but has not yet reached 2%. One member indicated that Japan is expected to achieve the Bank of Japan's price target by next spring, at which point wage growth may be needed to meet the target.

Several members noted that the depreciation of the yen could lead to overshooting inflation by pushing up import prices.