BOJ to Continue Raising Interest Rates Amid Inflation Concerns

Bank of Japan (BOJ) board member Kazuyuki Masu stated that the BOJ will continue to raise its key interest rate and adjust monetary accommodation in response to economic developments, prices, and financial conditions.

Masu emphasized that ensuring the underlying inflation rate does not exceed 2% is crucial. The BOJ is expected to raise its policy rate to around 1.25% at its September 17-18 meeting, after increasing it to 1.0% in June, its highest level in 31 years.

Masu warned that inflationary pressures could intensify due to the Iran situation and strong demand related to artificial intelligence, which has driven up prices of semiconductors and other goods.