Bank of Japan Policy Board member Masu Kazuyuki (増一行) spoke in Fukui City and emphasized the need for additional rate hikes. The market expects the central bank to raise its policy rate at the monetary policy meeting on the 17th and 18th.
Bank of Japan Policy Board member Masu Kazuyuki (増一行) spoke in Fukui City and said that further rate hikes are required to complete monetary policy normalization. The market expects the Bank to respond with a rate increase at its next monetary policy meeting.
At its previous meeting in July, the Bank of Japan identified “three risks” that it said would influence future rate-hike decisions. The situation in the Middle East, trends in AI-related demand and fluctuations in foreign exchange rates could affect prices and the economy.
Masu Kazuyuki (増一行) expressed concern that higher crude oil prices could push up logistics costs and drive underlying inflation. He also pointed to AI demand as a factor that could increase upward pressure on prices, saying these developments could affect the global economy as well.