Some board members called for more rate hikes July minutes
Several others warned against proceeding quickly
One member said hard to hike rates 39;automatically39; to neutral
Remarks highlight challenge surrounding BOJ39;s ratehike path

TOKYO, Sept 26 Reuters Bank of Japan policymakers were divided on how quickly the central bank should raise interest rates further, minutes of the bank39;s July meeting showed, highlighting uncertainty on the timing of the next increase in borrowing costs.

At the July meeting, the BOJ unexpectedly raised shortterm interest rates to 0.25 by a 72 vote, taking another step towards phasing out a decade of huge stimulus.

At least two in the ninemember board saw scope to raise rates further, with one saying the BOJ should hike borrowing costs in a timely and gradual manner to avoid being forced to do so rapidly later, the minutes showed on Thursday.

Another member said the BOJ must raise rates further once it was confirmed that firms were increasing capital expenditure, wages and prices.

Several others, however, warned against proceeding too quickly in phasing out stimulus.

Normalisation of monetary policy must not be an end in itself, one member was quoted as saying, adding that the BOJ must monitor various risks and move carefully.

The BOJ should avoid a situation where market expectations for future rate hikes increase excessively, as inflation expectations have yet to be anchored at its 2 target and prices remained vulnerable to…