BOJ minutes: one member says rate hikes may need to speed up

What happened. The Bank of Japan published the minutes of its September 17 and 18, 2026 meeting on November 5 at 8:50 a.m. Tokyo time. At that meeting it raised the policy rate by 0.25 percentage points to around 1.25% and the basic loan rate to 1.5%. Reuters says that is a 31-year high.

The key line. One member said the bank should shift away from encouraging a rise in underlying inflation and show the market its determination to prevent prices from overshooting, while also weighing the effect of the yen. If signs of such an upward deviation appear, the bank would need to accelerate the pace of hikes. The minutes add that policy should be run so as to prevent excessive and persistent price increases. Another member called for clear communication so the market does not build one-sided expectations.

Who voted against. The decision passed 7 to 2. Toichiro Asada said core inflation excluding fresh food had recently been below 2%, so it was better to keep the rate. Ayano Sato said the economy and prices had not clearly accelerated, so it was not the time to hike.

What came next. On October 30 the bank kept the rate at around 1.25% in an 8 to 1 vote. Hajime Takata dissented: he proposed a rise to 1.5% and a faster move toward the neutral rate.

What we do not know. When the next hike comes. How many board members now share the idea of moving faster. The minutes describe September, not today's views.

Confirmed facts

• Minutes of the September 17 and 18 meeting were published on November 5, 2026 at 8:50 a.m. Tokyo time.^[1]
• In September the rate was raised by 0.25 points to around 1.25%, and the basic loan rate to 1.5%.^[1][3]
• One member said that if signs of an upward deviation in prices appear, the bank would need to accelerate the pace of rate hikes.^[1][3]
• The September decision passed 7 to 2, with Toichiro Asada and Ayano Sato against.^[1]
• Asada pointed to inflation below 2%, and Sato said the economy and prices had not clearly accelerated.^[1]
• A rate of 1.25% is a 31-year high.^[3]
• On October 30 the rate was kept at around 1.25% in an 8 to 1 vote, with Hajime Takata proposing 1.5%.^[2]

Implications

• ConfirmedThe Bank of Japan board has voices for both faster and slower rate rises.
• Our readingIf Japanese inflation picks up, the chance of another hike rises. That is our reading.

Still unknown

• When the next hike comes
• How many board members want to move faster
• How the yen responds

Who it affects

Japan, Asia, Global. Yen and Japanese bond traders, investors who follow central banks

Sources

1. Bank of Japan: Minutes of the Monetary Policy Meeting on September 17 and 18, 2026 November 4, 2026 · official
2. Bank of Japan: Statement on Monetary Policy (October 30, 2026) October 30, 2026 · official
3. Investing.com (Reuters): BOJ board saw the need to keep raising rates, September meeting minutes show November 5, 2026 · media