Masu Reiterates Hawkish Stance Ahead of BOJ Meeting: Real Interest Rates Must Exit Negative Territory
Bank of Japan Policy Board member Kazuyuki Masu has reiterated his hawkish stance ahead of the central bank's September meeting. Speaking on Thursday, he stated that Japan is no longer in deflation and that real interest rates must exit negative territory as soon as possible.
Masu emphasized that underlying inflation is approaching 2% and financial conditions remain accommodative. He highlighted several pressure points that warrant attention, including the recent 7% increase in producer prices and the expected reacceleration of food prices.
The hawkish comments from Masu have provided some support for the yen, currently trading near 153.45. However, the currency's ability to sustain its gains will depend on subsequent data and the Bank of Japan's communication.