Members of the Bank of Japan say timely interest rate hikes are needed to complete policy normalization

Bank of Japan reviewer Kazuyuki Masu stated on Friday that the bank needs to continue raising benchmark interest rates to complete monetary policy normalization. He pointed out in a speech to business leaders in Ehime Prefecture, western Japan that although the potential inflation rate is still below 2%, it is close to the target. The key is to ensure that the inflation rate remains below 2% through timely interest rate hikes, while avoiding excessive interest rate hikes that could disrupt the virtuous cycle of moderate wage and price increases.