BOJ to Maintain Tight Monetary Policy, Kazuyuki Masu Warns

Bank of Japan Policy Board Member Kazuyuki Masu said that the central bank will continue to raise its policy rate to keep inflation in check. Speaking at a business leaders event, Masu emphasized the importance of preventing the underlying inflation rate from exceeding 2 percent.

Inflation has been rising steadily, and Masu believes that further rate hikes are necessary to maintain price stability. He added that financial conditions remain accommodative, but warned that the Bank of Japan will adjust its degree of monetary easing accordingly.

Masu's comments come as the Bank of Japan is expected to raise its benchmark interest rate by 25 basis points at its upcoming monetary policy meeting on September 16-17. The move would be a significant shift in the bank's monetary policy, and could have implications for the broader economy.