Bank of Japan policymakers remained deeply divided on whether to expand or scale back its massive stimulus program as they struggled to address weak inflation with a dwindling range options, a summary of opinions from a June rate review showed on Friday.
While the rift has existed ever since BOJ Governor Haruhiko Kuroda deployed his huge asset-buying program in 2013, it is becoming more evident as dissenters to negative interest rates openly criticize the governor's radical policies.
Kuroda has a big enough majority to push through any proposal to expand stimulus again, but the disagreement within the board underscores the challenges of putting a sustained end to deflation with aggressive money printing.
The BOJ kept monetary policy steady at the June 15-16 meeting, even as a yen spike and slumping stocks hurt business sentiment and threatened to derail a fragile economic recovery.
Several board members said the BOJ should hold off on expanding stimulus now to scrutinize the impact of January's decision to adopt negative interest rates and the outcome of the British referendum on whether to exit the European Union, according to the summary of opinions.