TOKYO (Dec 29): Bank of Japan (BOJ) policymakers debated the need to continue raising interest rates with some calling for "timely" action to curb future inflationary pressure, a summary of opinions at their policy meeting in December showed on Monday. At the Dec 18-19 meeting, the BOJ raised its policy rate to a 30-year high of 0.75% from 0.5%, taking another landmark step in ending decades of huge monetary support and near-zero borrowing costs. The summary showed many board members seeing the need for further increases to the BOJ's policy rate, which remained significantly negative in inflation-adjusted terms. Another opinion said the weak yen and rising long-term interest rates were due in part to the BOJ's policy rate being too low relative to inflation. "Raising the policy rate in a timely manner could curb future inflationary pressure and help hold down long-term interest rates," the second opinion showed.

Source: The Edge Markets December 29, 2025 01:03 UTC