BoJ’s Masu: Underlying inflation gradually approaching 2% but don't see it overshooting
Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Thursday that the policy rate is still below our estimated range on neutral rate and has been below that level for a very long time so this needs to be fixed soon.
Bank of Japan policy board member Kazuyuki Masu stated on Thursday that the Bank's policy rate is still below its estimated range for the neutral rate, having been below it for an extended period. He believes this needs to be corrected soon. Masu notes that underlying inflation is moving closer to the 2% target, but he does not anticipate it surpassing it sharply.
When asked about the likelihood of a 50-basis-point rate increase, he urged a cautious approach in raising borrowing costs. The Bank of Japan's policy rate remains below its estimated range for the neutral level, which must be addressed.
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