BoJ’s Masu says expect to continue raising rates given current accommodative financial conditions
Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Thursday that the central bank expected to continue raising interest rates given current accommodative financial conditions.
Bank of Japan policy board member Kazuyuki Masu stated on Thursday that the central bank anticipates continuing to raise interest rates, given the prevailing accommodative financial conditions. However, the magnitude and timing of the rate hikes will be determined by the likelihood of achieving the bank's baseline projections and considering risks, particularly in the context of oil price fluctuations, AI demand, and foreign exchange movements.
Currently, underlying inflation remains below 2% but is very close to that level, making it crucial for the Bank of Japan to prevent inflation from surpassing the 2% target sharply. Inflationary pressures, such as rising fuel and chemical goods prices, may initially appear as a one-off shock but could potentially impact prices through distribution costs. The USD/JPY pair saw a slight gain of 0.05% on the day, closing at 153.60.
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Also reported by 3 other outlets
- BOJ may be forced to hike rates rapidly if inflation accelerates, board member Masu says investing.com
- BOJ may be forced to hike rates rapidly if inflation accelerates, board member Masu says brecorder.com
- BOJ may be forced to hike rates rapidly if inflation accelerates, board member Masu says channelnewsasia.com
