By Leika Kihara
TOKYO (Reuters) – Some Bank of Japan policymakers warned that rising import prices from a weak yen were hurting consumer sentiment and heightening the risk of an inflation overshoot, minutes of the central bank’s June 13-14 policy meeting showed on Monday.
“Members agreed that the yen’s recent falls were among factors that push up inflation, and must warrant close attention in guiding monetary policy,” the minutes showed.
One board member said the cost of leaving inflationary risks unattended was heightening as companies had become more keen to pass on rising costs than before, the minutes showed.
A few in the nine-member board said the BOJ must consider raising interest rates from the perspective of forestalling future risks of an inflation overshoot.
“One member said the BOJ must continue to closely monitor relevant data in preparation for the next meeting in July and, if deemed appropriate, raise interest rates without delay,” according to the minutes.
The discussions underscore how the yen’s declines were among key factors that were discussed at the BOJ’s June meeting, and led to its decision in July to raise interest rates.
The BOJ kept interest rates steady in June but decided to lay out a plan at the July meeting for bond tapering over the coming one to two years.
(Reporting by Leika Kihara; Editing by Tom Hogue and Shri Navaratnam)
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