The Bank of Japan's policy board agreed unanimously in October that inflation has reached the 2% target, but split on how quickly to raise interest rates toward that level, opinions published on Tuesday show.
At the October meeting, the board judged that underlying inflation — price growth stripped of temporary factors — had reached the 2% price stability target. It was the first such judgment since the target was introduced in 2013.
The board also held the policy rate at around 1.25% on an 8-3 vote of its nine members.
Pace of hikes divides the board
The published opinions show members differed on how fast to lift the policy rate toward the neutral rate, the level that neither speeds nor slows the economy. The neutral rate is closely tied to where the policy rate will ultimately settle.
Some members argued for moving quickly. Others saw no need to rush while the 2% rate takes hold, according to the opinions.
The gap matters for markets watching the yen and for homeowners on variable-rate mortgages, both of which move with expectations for Japanese rates.