Bank of Japan policymakers supported further interest-rate increases and discussed whether tightening might accelerate as persistent inflation risks remained. Minutes from the Sept. 17-18 meeting showed officials examining Japan’s neutral interest rate and market estimates of the terminal rate, or the level at which the current hiking cycle would end. The BOJ raised its policy rate to 1.25% in September, a 31-year high, after also increasing rates in June, then held it unchanged in October. Officials indicated that underlying inflation had reached the central bank’s 2% target, reinforcing expectations of a possible December hike. One board member cited Middle East developments, artificial-intelligence-related demand and foreign-exchange movements in considering the pace of tightening. The yen strengthened past 158 per dollar for a second consecutive session, while Japan’s 10-year government bond yield fell to around 2.75%, its lowest level since late July, as global equities and bonds rallied and oil prices declined. A Reuters poll showed many analysts expected a December increase to 1.5%, with terminal-rate estimates centred on 1.75% to 2.0%. BOJ staff calculations put the nominal neutral rate between 1.1% and 2.5%, although officials differed over the appropriate endpoint.