A summary of opinions from the Bank of Japan's most recent policy meeting shows that many policy committee members think it is necessary to raise interest rates in the near future. According to the minutes of the October 29-30 meeting released on Tuesday, one of the nine members said, “The central bank should decide the timing of the next policy rate hike when conditions permit, and should not be overly cautious.” The Bank of Japan acknowledged last month that the potential inflation rate had reached the target level for the first time since the inflation target was introduced in 2013. Based on this, some opinions suggest that it is necessary to adjust the policy interest rate to a neutral level. A member said, “The potential inflation rate has reached 2%, and the central bank needs to adjust the policy interest rate to a neutral level as soon as possible.” The pricing of the swap agreement indicates that the bank will raise interest rates again in December is about 70%.

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