BOJ Will Keep Raising Benchmark Rate to Cap Price Trend at 2%, Board Member Says
- On Thursday, Bank of Japan board member Kazuyuki Masu warned the central bank may need to raise interest rates rapidly if inflation accelerates, noting that "financial conditions in Japan remain accommodative."
- Broadening price pressures from the Middle East conflict and a weak yen have pushed underlying inflation "very close" to the BOJ's 2 per cent target, Masu said. Rising fuel and chemical prices could have lasting effects on overall costs.
- BOJ staff estimates place Japan's nominal neutral rate between 1.1% and 2.5%, supporting further policy rate increases after the Bank raised rates to a 31-year high of 1% in June.
- The yen rose against the dollar following Masu's remarks, while pressure from U.S. Treasury Secretary Scott Bessent and hawkish BOJ commentary have cemented expectations for an interest rate hike this month.
- Analysts polled by Reuters expect the BOJ to hike rates to 1.25 per cent next week and then to 1.75 per cent in the second quarter of 2027, as policymakers monitor concerns over "potential overheating" in corporate investment.
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Global Market | BOJ may speed up rate hikes amid inflation, weak yen risks: Masu
BOJ board member Kazuyuki Masu has signalled that the central bank may need to raise rates quickly if inflation accelerates, strengthening expectations of a rate hike at its September 16–17 meeting. He said underlying inflation is nearing the 2% target and real rates should move out of negative territory
Bank of Korea to assess conditions to determine pace and timing of tightening, says board member
SEOUL, Sept 10 : A board member of the Bank of Korea said on Thursday the central bank would assess external and internal policy conditions, including the impact of the previous two rate hikes, to determine the timing and pace of further tightening. • "I think it is necessary to assess changes in external a
Kim Jong-hwa, a member of the Bank of Korea’s Monetary Policy Committee, stated on the 10th regarding the timing of future benchmark interest rate hikes, “We must closely examine the impact of the past two rate hikes.” Kim’s remarks were revealed through the “Message from the Lead Member” in the Monetary and Credit Policy Report released by the Bank of Korea on the same day. This is in the same vein as Bank of Korea Governor Shin Hyun-song’s sta…
BOJ’s Masu Says Will Continue to Raise Benchmark Rate
The Bank of Japan will continue to raise its benchmark interest rate to ensure that the price trend doesn’t exceed 2%, board member Kazuyuki Masu said, in comments that support widespread expectations that the bank will raise borrowing costs next week.
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