[BOJ Board Member Says Timely Rate Hikes Needed to Normalize Policy] Bank of Japan (BOJ) Policy Board member Kazuyuki Masu stated on Friday that the BOJ needs to continue raising its benchmark interest rate to complete the normalization process of its monetary policy. Speaking to local business leaders in Ehime Prefecture in western Japan, Masu noted that this move would help end the divergence in monetary policy direction between Japan and other countries regarding rate hikes or cuts. He said that although the underlying inflation rate remains below 2%, it is 'very close' to the 2% target. Japan has clearly entered an inflationary phase, and the key going forward is to ensure that the underlying inflation rate stays below 2% through timely and appropriate rate hikes. At the same time, it is crucial to avoid excessive rate hikes that could disrupt the virtuous cycle of moderate wage and price increases that has just begun to take shape.