Policymakers at Bank of Japan are debating how soon the central bank would raise interest rates which could even happen before inflation hits target level of 2%, Reuters reported citing sources.
Although a rate hike is far in sight and BOJ to maintain an ultra loose policy for at least a year.
However, BOJ carefully worded promises to keep loose monetary policy but not to keep rates at current low level.
“The BOJ never committed to keep rates on hold until inflation exceeds 2%,” a source familiar with the BOJ’s thinking said, a view echoed by two more sources of Reuters.
“That means theoretically, it can raise rates before inflation is sustainably above the target.”