BOJ Official Warns Faster Rate Hikes May Be Needed Amid Intensifying Price Pressures

A Bank of Japan official has sounded the alarm on inflation and interest rates. Kazuyuki Masu, a Policy Board member, warned that further rate hikes may be needed if price pressures intensify.

Masu made his comments during a speech in Fukui, central Japan, on Thursday (September 10), where he pointed to financial conditions remaining accommodative.

The BOJ is set to hold its next monetary policy meeting on September 17 and 18. Masu emphasized that underlying inflation has not yet reached 2%, but is 'very close' to the central bank's target.

He called for swift action on negative inflation-adjusted real interest rates, stating they should be addressed as soon as possible.