Bank of Japan policymakers agreed at their June 15-16 meeting that moderate economic growth would continue, supported by strong corporate profits, wage growth, and energy subsidies, though growth is expected to decelerate due to Middle East-driven oil price hikes.

Members prioritized upside inflation risks over growth concerns, supporting a 25-basis-point rate hike to 1.0%, according to the minutes released Wednesday.

Inflation is projected to accelerate "clearly above 2%" as higher crude oil prices are expected to push prices up.

The minutes also showed broad support for continuing reductions in Japanese government bond purchases through March 2027 before maintaining monthly purchases at about 2 trillion yen from April 2027 to preserve market functioning.

One member dissented, arguing the BOJ should continue reducing bond purchases beyond that date.