Bank of Japan member Junko Kojima: Japan's neutral interest rate is above 1%. On May 21st, according to Golden Jubilee Data, Bank of Japan's deliberation member Junko Kojima stated on Thursday that she believes Japan's nominal neutral interest rate is above 1%. According to current employee estimates, the Bank of Japan believes that the real neutral interest rate is around -0.9% to+0.5%. Assuming inflation fluctuates around the Bank of Japan's 2% target, this means that the nominal neutral interest rate will be in the range of 1.1% to 2.5%. My opinion is that the lower limit of Japan's neutral interest rate may be higher than 1%, "Juniko Nagisa said at a press conference. The nominal neutral interest rate is closely monitored by the market as it can guide the central bank's short-term policy rate to a level that is neutral to the economy. The Bank of Japan currently sets the short-term policy interest rate at 0.75%.