By Leika Kihara

TOKYO (Reuters) – Some Bank of Japan policymakers said inflation may overshoot initial expectations, with one member saying it was important to communicate an exit strategy from ultra-easy policy when the “right timing comes,” a summary of opinions at the BOJ’s September meeting showed on Monday.

“There’s a risk consumer inflation may deviate significantly upward from our baseline scenario, partly due to the impact of exchange-rate moves. This needs to be examined humbly and without any preconceptions,” one board member was quoted as saying.

“Companies continue to announce plans of price hikes against the background of higher raw material costs. Price rises are likely to continue for a wide range of products,” according to another opinion shown in the summary.

While many board members saw wage developments as key to the outlook for monetary policy, one member said there was a chance Japan can achieve “high wage growth” due to a tightening job market, the summary showed.

Many opinions, however, called for the need to maintain ultra-loose policy due to Japan’s still weak economy and an expected slowdown in inflation next fiscal year, when the impact of soaring fuel costs dissipate, the summary showed.

But one member pointed to concern held among some market participants over distortions in bond market functioning, driven in part by the BOJ’s huge bond buying.

“With a view to ensuring financial market stability, it is important for the BOJ to continue to monitor and examine market conditions and, at some point in the future when the timing is considered appropriate, to make proper communication with the markets, such as regarding exit strategies,” the member was quoted as saying.

At the Sept. 21-22 meeting, the BOJ maintained ultra-low interest rates and its guidance pledging to keep monetary policy ultra-loose until inflation stably achieves its 2% target.