TOKYO, March 30 (Reuters) – Bank of Japan policymakers debated the need to raise interest rates further as surging oil costs from the Middle East conflict heighten inflationary pressure, with one signalling the need to accelerate the pace of hikes, a summary of opinions at their March policy meeting showed on Monday.
“There is a risk the BOJ may unintentionally fall behind the curve, since second-round effects and rise in underlying inflation stemming from overseas developments are more likely to emerge,” one member was quoted as saying.
At the March meeting, the BOJ kept interest rates steady but maintained its bias for tighter monetary policy, warning that surging oil prices driven by the Middle East conflict could exacerbate inflationary pressure.
(Reporting by Leika Kihara; Editing by Christopher Cushing)
Comments