According to remarks on September 10, Masuda Kazuyuki, a BOJ Policy Board member, called for additional rate increases to firmly anchor policy rates within the estimated neutral rate range, citing rising global inflation pressures. Masuda noted that many central banks worldwide have begun hiking rates in response to inflation concerns, including those triggered by the Iran situation.
The policy board member warned that crude oil price increases from the Iran crisis could have broader economic impacts than the 1970s oil shocks, potentially cascading into consumer prices through supply chain costs and corporate pricing strategies. He emphasized the need to move away from negative real interest rates, as Japan's economy is no longer in deflation, and highlighted risks including yen weakness and AI-related demand volatility that could affect price stability.
