The Bank of Japan (BOJ) may eventually have to raise interest rates rapidly if inflation accelerates, given the country’s still-loose financial conditions, board member Kazuyuki Masu said on Thursday, reinforcing expectations of a rate hike at next week’s policy meeting, Reuters reported.
In a closely watched speech ahead of the BOJ’s September 16-17 meeting, Masu warned that broadening price pressures have pushed underlying inflation very close to the central bank’s 2% target. He also said the BOJ should move real interest rates out of negative territory as soon as possible, Reuters said in the report.
