BOJ Pledges Higher Rates to Prevent Exceeding 2% Inflation

Bank of Japan board member Kazuyuki Masu reaffirmed the central bank's commitment to raising its benchmark interest rate. In a speech on September 10, 2026, Masu emphasized that the BOJ will continue to raise the policy interest rate to ensure the price trend does not exceed 2%. This statement supports widespread expectations that the bank will increase borrowing costs next week.

Masu noted that financial conditions remain accommodative and that what is vital now is to ensure the underlying inflation rate does not significantly exceed 2%.