BOJ Member Seeks Further Rate Hikes for Monetary Policy Normalization

A Bank of Japan Policy Board member has called for further interest rate hikes to complete monetary policy normalization.

Kazuyuki Masu made this statement in a speech in Fukui, central Japan. According to him, underlying inflation is close to the BOJ's target of 2%, despite remaining below it.

Masu emphasized that financial conditions in Japan are still accommodative and that a rapid policy interest rate hike may be necessary if inflation accelerates.

He also highlighted the need to address negative real interest rates as soon as possible, saying they 'should be addressed as soon as possible.'