Bank of Japan policymakers were aware of the need for pre-emptive action to achieve an inflation target, but some voiced concern a negative interest rate could cause confusion, minutes of the central bank's January policy meeting show.
The Jan. 28-29 meeting of the nine-member Policy Board came amid turbulence in financial markets, with tumbling oil prices stoking concern about their negative effect on inflation expectations in Japan.
Many members expressed the view that the introduction of a negative interest rate was desirable to curb the risk of inflation stagnating and maintain momentum toward the BOJ's 2 percent inflation target.