MUFG Research discusses the summary of opinions from the BoJ's June meeting

"Pressure on Japan to intervene again to support yen has increased after the BoJ’s latest rate hike failed to disrupt the weakening trend. The release of the minutes overnight from the June policy meeting indicated support for further rate hikes. the BoJ has become less concerns over downside risks to growth while many members expressed awareness of upside risks to prices. The minutes suggested that one or two members may propose voting for another hike as soon as September or October. One member noted it is desirable ”to consider whether to raise the policy interest rate as appropriate with intervals of a few months in mind”," MUFG notes.

"The Japanese rate market is now pricing in around 16bps of hikes by October. However, market expectations for the BoJ to speed up rate hikes have not yet triggered a stronger yen," MUFG adds.