The Bank of Japan signaled that further rate hikes remain possible if its outlook for economic activity and prices materializes, a summary of opinions from its September meeting showed. Policymakers stressed the need to judge the outlook “without any preconceptions.” While U.S. tariffs, even after being cut to 15%, are expected to weigh on growth, the economy is still seen moderating only temporarily. On prices, CPI growth is projected to stay below 2% in FY2026 as food-related cost pressures ease. Some members argued it may be time to consider another hike, noting more than six months since the last move, but others pointed out the impact of earlier hikes to 0.5% has been “extremely limited.” With both upside and downside risks present, they warned against raising rates to a restrictive level too quickly. Given uncertainty over the U.S. slowdown, many agreed that accommodative conditions should be maintained and that a surprise hike should be avoided.