BOJ Board Member Warns of Rapid Rate Hikes Amid Accelerating Inflation Fears

Bank of Japan (BOJ) board member Kazuyuki Masu has warned that the central bank may be forced to raise interest rates rapidly if inflation accelerates in Japan. This is because the country's financial conditions remain accommodative, according to Masu.

In a speech on Thursday, September 10, 2026, Masu emphasized the need for the BOJ to increase its policy rate further. He believes that this would ensure flexibility in adjusting interest rates as needed in response to changing economic conditions.

Masu cited the BOJ's estimated range of the neutral interest rate, stating that it falls solidly within this range. This suggests that raising interest rates could help stabilize inflation and maintain economic stability.