The Bank of Japan has flagged rising upside inflation risks, with one member pointing to a possible acceleration of the pace of interest rate hikes in a summary of opinions from its July meeting.

¡°Given that underlying CPI inflation has been approaching 2% and greater consideration should be given to upside risks to prices than before, it could be considered that the pace of policy interest rate hikes will be faster than market expectations,¡± one of the nine board members said, according to a summary from the July 30-31 meeting released Monday.

One member called on the BOJ to demonstrate its determination to prevent upward inflation deviations, potentially with larger rate hikes, as central bankers across the world enter a phase of rate hikes.