BOJ policymaker warns of price risks that may trigger rapid rate hikes
A recent spike in producer prices could push up consumer inflation
Bank of Japan policymaker Kazuyuki Masu warned of potential rapid interest rate hikes in response to rising producer prices and the risk of consumer inflation exceeding the 2 per cent target. In a speech ahead of the central bank's policy meeting, Masu emphasized the need to pull real interest rates out of negative territory and highlighted the impact of higher oil and food prices on transportation and overall costs.
He noted that financial conditions in Japan remain accommodative, making it crucial for the BOJ to ensure underlying inflation does not significantly exceed the 2 per cent threshold. Masu's remarks came as markets priced in a near-term rate hike, with the yen strengthening against the dollar and analysts forecasting a rate increase to 1.25 per cent next week and 1.75 per cent in Q2 2027.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- BOJ policymaker warns of price risks that may trigger rapid rate hikes channelnewsasia.com
