Bank of Japan policymakers saw the need to keep ultralow interest rates but discussed growing prospects that higher wages could finally eradicate the risk of a return to deflation, a summary of opinions at their December meeting showed.
Their increasing attention to mounting inflationary pressures could keep alive market expectations the BOJ will phase out dovish Gov. Haruhiko Kuroda's massive stimulus when he steps down in April next year.
"Price rises are accelerating not just for goods but for services. ... There's a chance Japan's inflationary momentum is heightening," one member was quoted as saying in the summary, released Wednesday.