The minutes from the Bank of Japan's April monetary policy meeting reveal that board members reached a consensus on the necessity to continue raising interest rates in line with economic, inflation, and financial conditions.

Members aligned on the timing and pace of monetary policy adjustments, agreeing to balance two key considerations: closely monitoring the impact of Middle East conflicts on the Japanese economy while assessing the likelihood of the baseline economic outlook materializing.

It is noted that the Bank of Japan kept its policy rate unchanged in April but proceeded with a rate hike in its monetary policy meeting earlier this week.

Some members indicated that if there is a sustained risk of rising oil prices, it would be appropriate to raise interest rates to a neutral level sooner rather than later, to prevent core inflation from persistently exceeding its appropriate range.

One member noted that the current policy rate remains significantly below the neutral rate, necessitating that the central bank continue to implement rate hikes every few months.