Bank of Japan Policy Board member Masu Kazuyuki (増一行) spoke in Fukui City, indicating that the Bank would continue raising the policy rate and adjust the degree of monetary easing. He explained that the inflation rate had come quite close to 2% and also pointed out that demand for AI was pushing up prices.
In a speech in Fukui City, Bank of Japan Policy Board member Masu Kazuyuki (増一行) said the Bank would continue raising the policy rate and adjust the degree of monetary easing. He explained that the underlying inflation rate had come quite close to 2%.
He also said that, against the backdrop of developments in Iran and other factors, there was concern that inflationary pressure could intensify, adding that the key was to keep inflation from rising significantly above 2%.
He further pointed out that “even during a period of global monetary easing, if inflation accelerates, there is a risk that Japan could be forced to raise interest rates rapidly.” He also said that demand for AI was pushing up prices of semiconductors and other products.
The remarks suggest continuity in the Bank of Japan’s monetary policy management and close monitoring of price trends.