At a speech in Fukui City, BOJ Policy Board member Masu Kazuyuki (増一行) said that the central bank would continue raising the policy rate and adjust the degree of monetary easing. He explained that underlying inflation is fairly close to 2%.
BOJ Policy Board member Masu Kazuyuki (増一行) said at a speech in Fukui City on the 10th, “We will continue raising the policy rate and adjust the degree of monetary easing.” He explained that underlying inflation, excluding short-term factors, is approaching 2%.
He said there were concerns that inflationary pressure could intensify against the backdrop of the situation in Iran, and emphasized the significance of raising rates, saying, “What matters is keeping inflation from substantially exceeding 2%.”
Masu (増一行) said that “the whole world is in rate-hike mode in response to the situation in Iran,” adding that Japan, which remains accommodative, “faces the risk of being forced to raise rates rapidly if inflation accelerates.” He also cited AI demand pushing up prices for semiconductors and other products as a factor driving inflation.