Some members of the BOJ caution about lagging in response to inflation, according to the summary of the January meeting

Bank of Japan Officials Voice Concerns Over Inflation and Weak Yen

During their January meeting, members of the Bank of Japan expressed growing unease about rising inflation driven by the depreciating yen. Some policymakers cautioned that the central bank could risk lagging behind in addressing surging prices if global interest rates shift this year. One participant emphasized the importance of moving Japan’s real interest rates out of negative territory to avoid falling behind economic trends.

Although the central bank has not yet clearly fallen behind in its response, the urgency to consider raising rates is increasing as inflationary pressures persist.