BOJ Board Member Masu Signals Support for Early Rate Hike
BOJ member Kazuyuki Masu said the bank should raise rates soon if the economy remains stable. Rising oil costs and a weak yen are driving inflation risks.
Bank of Japan board member Kazuyuki Masu called for an early interest rate hike on Thursday to prevent inflation from exceeding 2%. The hawkish shift follows an April meeting where three of nine board members dissented to favor a 1.0% rate. Markets now price a 70% chance of a June hike as energy costs from the Iran war intensify price pressures.
### Why the BOJ Is Shifting Toward June Masu, who voted to keep rates steady in April, told an audience that Japan has clearly entered an inflationary phase. He argued that unless data shows a clear economic downturn, the BOJ should raise rates at the earliest stage possible. This rhetoric aligns with a Reuters poll where two-thirds of economists predicted a hike by June.
