People familiar with the matter said that due to current price trends and the central bank's judgment, the impact of previous interest rate hikes on the economy was limited, and the Bank of Japan may maintain a relatively fast pace of interest rate hikes, and the next interest rate hike window falls in December. People familiar with the matter said that central bank officials believe that the underlying inflation trend has roughly reached the target level of 2%, but at the same time they believe that the current policy interest rate is still a long way from a neutral interest rate that neither stimulates nor suppresses the economy. In this context, the central bank believes that it is increasingly necessary to stabilize underlying inflation close to the target. People familiar with the matter said that if the economic and inflation trends are in line with the central bank's predictions, the recently accelerated pace of interest rate hikes is likely to continue. People familiar with the matter stressed that the interest rate path is not predetermined; the resolution depends on economic prospects, related risks, and the cumulative effects of successive interest rate hikes. However, the central bank does not think that interest rates need to be tightened again immediately after the September hike; it is possible to raise interest rates again as early as December.

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