At a December policy meeting, the Bank of Japan's decision-making board discussed a scenario in which continued economic improvement could lead the central bank to raise interest rates before it reaches its 2 percent inflation target, a summary of opinions showed Thursday.
Many board members voiced the need to continue aggressive monetary easing as there is still a "long way to go" for inflation to pick up, according to the summary. But one member suggested that a rate hike may become appropriate if "economic activity and prices . . . continue to improve going forward."
"The situation may occur where the bank will need to consider whether adjustments in the level of interest rates will be necessary" under the current policy framework, "including from the perspective of strengthening the sustainability of the framework," the policymaker said.