BOJ Warns Rapid Rate Hikes May Be Needed
Bank of Japan board member Kazuyuki Masu warned that the central bank may need to raise interest rates rapidly if inflation accelerates. Masu noted that underlying inflation is nearing the two percent target, reinforcing expectations for a policy rate hike this month.
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Bank of Japan board member Kazuyuki Masu warned on Wednesday afternoon that loose financial conditions could force rapid rate hikes if inflation accelerates. The remarks solidify expectations for a policy rate increase at next week's meeting. Underlying inflation in Japan is hovering near the 2% target, driven by broadening price pressures. Masu stated that real interest rates must be pulled out of negative territory as soon as possible.
