Board debated risk of inflation overshoot in July summary
Hawkish debate likely behind Governor Ueda39;s ratehike signal
Some members warned against premature hike, weak consumption
BOJ hiked rates at July 3031 meeting, laid out bond taper plan

TOKYO, Aug 8 Reuters Bank of Japan policymakers, in deciding a landmark increase in interest rates last month, discussed further rate hikes, a summary of the discussion showed on Thursday, prompting a hawkish shift that has contributed to global market turmoil.

One member of the policy board said the central bank should eventually raise its policy rate to around 1 or higher, according to the summary of opinions, the first time a BOJ policymaker has specified a potential endpoint.

In the surprise move on July 31, the central bank raised its shortterm policy target to 0.25, its highest in 15 years, from a zeroto0.1 range, and released a plan for tapering its huge asset buying in a landmark shift away from a decadelong stimulus programme.

The July increase and subsequent comments by BOJ Governor Kazuo Ueda signalling the chance of further rate hikes along with indications that the Federal Reserve was preparing to cut U.S. rates caused a spike in the battered yen and contributed to global market turmoil.

The ninemember board debated the risk that rising import costs and steady wage increases might push up inflation more than expected, the summary showed, highlighting a growing sense in the board that more rate hikes might…