BOJ Will Keep Raising Benchmark Rate to Cap Price Trend at 2%, Board Member Says
Masu said the BOJ may need to raise rates quickly if inflation accelerates as producer prices and weak yen pressures persist.
- On Thursday, Bank of Japan board member Kazuyuki Masu stated the Bank will continue raising the policy interest rate to keep inflation near 2%, citing accommodative financial conditions in Fukui Prefecture.
- The Bank raised rates to a 31-year high of 1% in June, with staff estimates placing the nominal neutral rate between 1.1% and 2.5%, amid pressure from Treasury Secretary Scott Bessent.
- Masu warned that underlying inflation is 'very close' to the 2% target, noting that if inflation accelerates, the Bank may 'inevitably need to rapidly raise interest rates' to prevent overheating.
- Separately, Bank of Korea board member Kim Jong-hwa stated the central bank must assess external and internal conditions, including the impact of previous rate increases, to determine future tightening pace.
- Analysts polled by Reuters expect the BOJ to hike rates to 1.25% next week, with further increases to 1.75% projected by the second quarter of 2027 amid yen weakness.
25 Articles
25 Articles
Global Market | BOJ may speed up rate hikes amid inflation, weak yen risks: Masu
BOJ board member Kazuyuki Masu has signalled that the central bank may need to raise rates quickly if inflation accelerates, strengthening expectations of a rate hike at its September 16–17 meeting. He said underlying inflation is nearing the 2% target and real rates should move out of negative territory
Bank of Japan’s Masu warns inflation could force faster rate hikes
Bank of Japan board member Kazuyuki Masu warned on September 10 that accelerating inflation could force the central bank to raise interest rates rapidly, adding to the debate over how quickly Japan should move away from cheap borrowing.
Bank of Korea to assess conditions to determine pace and timing of tightening, says board member
SEOUL, Sept 10 : A board member of the Bank of Korea said on Thursday the central bank would assess external and internal policy conditions, including the impact of the previous two rate hikes, to determine the timing and pace of further tightening. • "I think it is necessary to assess changes in external a
Kim Jong-hwa, a member of the Bank of Korea’s Monetary Policy Committee, stated on the 10th regarding the timing of future benchmark interest rate hikes, “We must closely examine the impact of the past two rate hikes.” Kim’s remarks were revealed through the “Message from the Lead Member” in the Monetary and Credit Policy Report released by the Bank of Korea on the same day. This is in the same vein as Bank of Korea Governor Shin Hyun-song’s sta…
BOJ’s Masu Says Will Continue to Raise Benchmark Rate
The Bank of Japan will continue to raise its benchmark interest rate to ensure that the price trend doesn’t exceed 2%, board member Kazuyuki Masu said, in comments that support widespread expectations that the bank will raise borrowing costs next week.
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