BOJ Member Seeks Higher Interest Rates Amid Rising Inflation Concerns

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 on September 10, 2026, citing that underlying inflation is close to reaching the BOJ's target of 2%. Financial conditions in Japan remain accommodative, and the central bank may need to implement rapid rate hikes if inflation accelerates.

Masu emphasized that negative real interest rates should be addressed as soon as possible. He also noted that the yen's depreciation has become more pronounced than in the past, making it a concern for price stability.