BoJ's Masu Warns Against Overshooting Inflation Target

Bank of Japan (BoJ) policy board member Kazuyuki Masu expressed concerns about the central bank's policy rate being below its estimated neutral level, stating that it needs to be fixed soon.

Masu noted that underlying inflation is gradually approaching the BoJ's 2% target but does not see it overshooting sharply above this level.

When asked about the possibility of a 50-basis-point rate hike, Masu said they should proceed with caution and scrutinize factors such as rising crude oil and global food prices at their next meeting.

Masu emphasized that it is unnatural for the BoJ's policy rate to stay below its estimated range on neutral level, particularly given the recent rise in the yen and other economic indicators.