Bank of Japan Prepares for Another Interest Rate Hike

Kazuhito Masu, a member of the Monetary Policy Council of the Bank of Japan, hinted at an interest rate hike in the next meeting. The official stated that they will continue to raise the official interest rate and adjust the degree of monetary easing.

The decision comes as inflation remains close to 2% and the yen's recent evolution is also a factor. In June, the Bank of Japan raised the benchmark interest rate by 25 basis points to 1%, its highest level since 1995.

With inflation standing at 1.9% in August, just shy of surpassing the 2% threshold, Masu emphasized the need for continued tightening of monetary policy to contain rising prices.