BOJ Policy Board member Masu Kazuyuki (増一行) said he wanted to "quickly resolve" the situation in which the policy rate remains below the lower end of the neutral rate range. The current policy rate of 1.0% has remained below the lower end of the estimated neutral rate range, at 1.1%.
BOJ Policy Board member Masu Kazuyuki (増一行) said at a press conference that he wanted to "quickly resolve" the situation in which the policy rate remains below the lower end of the estimated neutral rate range. The press conference was held after a meeting on financial and economic affairs in Fukui City, and the current policy rate is 1.0%. The neutral rate is estimated at 1.1%–2.5%, and the situation below its lower bound was explained.
Asked whether continuing to raise interest rates would produce a situation in which the rate exceeds the lower bound, Masu Kazuyuki (増一行) said, "We will have to see," suggesting that an assessment of the situation could become a factor in considering future interest-rate policy. He did not offer a clear conclusion on the level of the neutral rate, indicating that decisions would be based on economic data going forward.
The article focused on the press conference and did not assert the direction of interest-rate policy at this point. Given the nature of the meeting in Fukui City, no specific date for a future policy decision or numerical target was presented, leaving the matter subject to further updates.
Overall, the article suggested that discussion is likely to continue regarding fine-tuning monetary policy and the Bank's future accountability as the gap between the neutral rate range and the current policy rate persists.