BOJ board member Masu Kazuyuki (増一行) said that underlying inflation had come quite close to 2% and expressed the view that the BOJ should continue adjusting the degree of monetary easing through rate hikes. He made the remarks in a speech in Fukui City.
During a speech, BOJ board member Masu Kazuyuki (増一行) said that, excluding temporary factors, the underlying rate of inflation had come quite close to the 2% target in discussing the conduct of monetary policy. He indicated that the BOJ intended to continue raising rates and appropriately adjust the degree of monetary easing.
At its previous July monetary policy meeting, the BOJ kept the policy rate at around 1.0%, but the governor stressed upside risks to inflation and mentioned the possibility of accelerating the pace of rate hikes at a press conference. Immediately afterward, Japanese and US monetary authorities jointly intervened to correct the yen's depreciation, and the interest rate swap market is pricing in an additional rate hike this month.
If the BOJ raises the policy rate at the meeting on the 17th and 18th, it would be the first hike in three months since the previous increase in June, prompting growing views that the pace would accelerate from the market's previous assumption of roughly one hike every six months. Remarks by Masu Kazuyuki (増一行) concerning the pace and scope for further rate hikes have also drawn market attention.
These remarks, reported by Bloomberg, were conveyed via Yahoo! News. As for future developments, it will be necessary to await additional official announcements or the meeting results.