A number of Bank of Japan policy board members appeared optimistic about the impact of a small rate increase on the economy, arguing that July was the right time to begin taking rates higher, according to minutes from the July policy meeting released Thursday.
Some members agreed that real interest rates would remain in negative territory “even if the bank raised the policy interest rate slightly, and accommodative financial conditions would continue to support economic activity,” the minutes show.
“Some members expressed the view that it was appropriate to start gradually adjusting the significantly low policy interest rate at this stage.”
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