BoJ Signals Continued Interest Rate Hikes Amid Inflation Concerns

The Bank of Japan (BoJ) has signaled its intent to continue raising its benchmark interest rate, according to BoJ board member Kazuyuki Masu. Speaking at a speech in Fukui, western Japan, Masu emphasized the importance of keeping inflation under control.

With financial conditions still accommodative, the BoJ is set to raise borrowing costs next week, as widely expected by market observers. The current price trend is 'very close' to 2%, and Masu stressed that it's essential to ensure underlying inflation doesn't exceed this level.

The comments from Masu suggest that the BoJ won't be finished with tightening its settings even if the policy rate enters the lower range of its estimated neutral level for the first time in the current hiking cycle.