Bank of Japan Policy Board member Masu Ikko (増 一行) said in a speech in Fukui City that the Bank intends to continue raising the policy rate and adjusting the degree of monetary easing. He explained that the underlying inflation rate is now fairly close to 2%.
Bank of Japan Policy Board member Masu Ikko (増 一行) said in a speech in Fukui City that the Bank intends to continue raising the policy rate and adjusting the degree of monetary easing. He explained that the underlying inflation rate is now fairly close to 2%.
In the speech, he also touched on the impact of the global trend toward rate hikes against the backdrop of the situation in Iran, saying that Japan's monetary policy remains accommodative but that there is a risk of being forced to raise rates rapidly if inflation accelerates. He cited demand for artificial intelligence as a factor pushing up prices for semiconductors and other goods.
He stressed the importance of containing upward pressure on prices and said it is important to keep inflation from rising significantly above 2%. The Bank is expected to maintain a cautious approach to monetary policy operations, depending on domestic and overseas economic developments.