Bank of Japan board members are split over the future path of interest rates, minutes of the central bank's monetary policy meeting in July showed.
The board also pointed out that import prices had turned positive again, and upside risks to prices required attention.
Some board members pointed out that "it was appropriate for the Bank to make moderate adjustments" given such risks.
Another member pointed out that medium-to long-term inflation expectations were not anchored at 2%, and prices remained vulnerable to downside risks.
As such, the BOJ should avoid a situation where the market expectations for future rate hikes "increase excessively."
Organizations:
Bank of, Bank of Japan, Bank
Locations:
Bank of Japan, Tokyo