Bank of Japan meeting opinion summary: Some members believe interest rates should continue to be raised, focusing on upside inflation risks.

On October 1, the Bank of Japan released the summary of opinions from its September 17-18 monetary policy meeting. The document shows that some members believed Japan's economic activity and price trends were broadly in line with expectations, with core consumer price index inflation approaching the 2% price stability target, and that it was appropriate to raise the policy interest rate and adjust the degree of monetary easing while financial conditions remained accommodative. Some members noted that Japan's economy is expected to continue growing moderately, with rising global demand related to artificial intelligence and government measures providing support, though the situation in the Middle East could bring downward pressure. Regarding prices, members believed the mechanism of wages and prices mutually reinforcing is being maintained, and core CPI is expected to reach a level broadly consistent with the 2% target in the second half of fiscal 2026 through fiscal 2027.