The buffer theory should be interpreted as raising interest rates after confirming that price increases have gained enough momentum. This theory posits that interest rates will rise due to inflation. I would like to emphasize that the Bank's current thinking on the buffer theory is totally different from the previous incorrect one. Private banks' business consists of borrowing short-term debt and financing long-term lending.
The higher long-term interest rates are relative to short-term rates, the larger banks' loan margins will be. Since short-term interest rates generally do not rise as much as long-term rates, banks naturally will gain profits if interest rates go up due to an increase in the inflation rate. So, why did banks want a hike in interest rates as early as possible?