Written by Laika Kihara
TOKYO (Reuters) – Bank of Japan policymakers agreed in October to keep raising interest rates if the economy moves in line with their expectations, but some stressed the need to be cautious because of the uncertain outlook, minutes of the Bank of Japan's meeting showed on Tuesday.
The central bank left interest rates steady at 0.25% at the October 30-31 meeting, but expected inflation to move around its 2% target in the coming years, suggesting it is on track to raise borrowing costs in the near future.
The minutes showed that the nine-member board shared the view that the Bank of Japan would continue to raise interest rates if its economic and price forecasts were met.
But many members also stressed the need for continued scrutiny of risks surrounding external economies, including the US economy, and markets that remain unstable.
“We must guide monetary policy cautiously given the growing uncertainty at home and abroad,” one member was quoted as saying explaining why the Bank of Japan should hold steady in October.
The Bank of Japan left interest rates unchanged at a subsequent meeting in December pending more data on whether wages will maintain their upward momentum next year and more clarity on the policies of US President-elect Donald Trump.
