April BoJ minutes show a 6-3 vote to hold rates, with dissenters citing inflation risks and a need for normalization.
The Bank of Japan’s April meeting minutes revealed a 6-3 vote to keep the overnight call rate at 0.75%, with three members advocating for a hike to 1.00%. Dissenters cited upside inflation risks and second-round effects from energy costs as key reasons for tightening.
At the time, core CPI excluding fresh food was running at 1.5-2.0%, while the board projected fiscal 2026 inflation at 2.5-3.0%. The majority held rates due to Middle East uncertainty, but the minutes now appear hawkish after the BoJ later raised rates to 1.00%.
With geopolitical risks easing and crude prices retreating, the path for further normalization remains open, heightening sensitivity in USD/JPY markets.