BoJ's Masu: Interest Rates Likely to Continue Rising Amid Accommodative Conditions

Bank of Japan (BoJ) policy board member Kazuyuki Masu stated that interest rates are likely to continue rising given current accommodative financial conditions. However, the pace and timing of rate hikes will be decided based on various factors, including the likelihood of achieving baseline projections and assessing potential risks.

Masu emphasized that underlying inflation is still below 2% but getting close to that level. He highlighted the importance of avoiding sharp overshooting in underlying inflation from 2%.

The policy board member also noted that a rise in fuel and chemical goods prices could be a one-off shock, but may have broader impacts on prices through distribution costs.