By Megumi Fujikawa

TOKYO--The Bank of Japan's policy board discussed the possibility of raising interest rates further amid concerns over lingering inflationary pressure, according to a summary of opinions from its latest meeting released Monday.

"There is a possibility that prices will deviate upward from the baseline scenario if another pass-through of recent cost increases to consumer prices happens," one of the nine policy board members said at the meeting held on June 13 and 14.

"It is therefore necessary for the bank to consider whether further adjustments to monetary accommodation are needed from the perspective of risk management," the member said.

In a step toward monetary tightening, the Japanese central bank decided at the June meeting to reduce its government bond purchases. It said it would release a detailed plan at its next meeting in end-July after discussing with market participants.

"The bank needs to normalize its balance sheet in a timely and appropriate manner, while communicating with market participants," one board member was quoted as saying.

There was another opinion that the cutback on bond purchases should be conducted separately from monetary policy because it would be aimed at reducing the bank's involvement in the JGB market.

The BOJ's summary of opinions doesn't identify individual speakers.

Write to Megumi Fujikawa at

(END) Dow Jones Newswires

06-23-24 2101ET