BoJ Board Member Masu says one‑ to two‑year real interest rates remain negative and need to keep price trend from going above 2%, adds underlying inflation is still below 2% but quite close to that level

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BoJ Board Member Masu says one‑ to two‑year real interest rates remain negative and need to keep price trend from going above 2%, adds underlying inflation is still below 2% but quite close to that level

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Says:

  • BoJ is expected to continue raising interest rates given current accommodative financial conditions.
  • Higher fuel and chemical goods prices could be one-off shock but may have broader impact on prices via distribution costs.
  • Most important thing is to avoid underlying inflation from overshooting sharply from 2%

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