Bank of Japan Vows to Keep Hiking Rates to Tame Inflation

Bank of Japan board member Kazuyuki Masu emphasized that the central bank will continue to raise interest rates to prevent inflation from surpassing its 2% target. Speaking at a meeting in Fukui Prefecture on September 10, Masu stated that current price dynamics are close to the target and financial conditions remain accommodative.

The Bank of Japan's decision is expected to be made after their two-day meeting on September 18, with market expectations suggesting a probability of around 97% for raising borrowing costs from the current level of 1%. Masu also noted that the regulator does not plan to end monetary policy tightening even when the key rate enters the lower range of the estimated neutral level.