Bank of Japan policymakers were divided over how quickly to raise interest rates, according to a summary of opinions from the central bank's October meeting published on 10 November 2026. Some members called for speeding up the pace of increases now that underlying inflation has reached the bank's 2% target, while others warned against moving too hastily.

At the meeting on 29 and 30 October, the Bank of Japan kept its key rate at 1.25% by an eight-to-one vote. Hajime Takata was the sole dissenter, proposing an increase to 1.5%. In September, the board had raised the rate by 25 basis points to 1.25%, the highest since 1995, in a seven-to-two vote.

Some members want the next rise soon

One member was quoted in the summary as saying the central bank should deliver the next rate hike "without becoming overly cautious", signalling that an increase could come at the next meeting in December. Another member said: "The effects of past rate hikes have yet to materialise and financial conditions remain accommodative," adding that "Japan is in a new phase where the BOJ needs to step up the pace of bringing its policy rate to neutral." Two other members called for raising the rate to a level seen as neutral for the economy soon.

The summary also recorded the case for patience. Several members warned against being too hasty because of soft consumption and uncertainty about whether demand linked to artificial intelligence would last. One member said the bank needed to scrutinise "a little more" the risks around economic activity and prices, which left room for action in December without committing to it.

Where the neutral rate may sit

Bank of Japan staff have estimated Japan's nominal neutral rate, the level that neither cools nor overheats the economy, at between 1.1% and 2.5%. Hawkish board member Naoki Tamura has said the neutral rate was likely around 2%, while other members have not given a specific figure. Analysts polled by Reuters expect the bank to raise its policy rate to 1.5% in December and then move at a quarterly pace.

The Bank of Japan's next scheduled monetary policy meeting is on 17 and 18 December. The summary of opinions does not name the member behind each view, and it is not a new interest-rate decision. Read the Reuters report on the summary of opinions and the Bank of Japan page listing the 10 November summary.