BOJ Board Member: Inflation May Reach Target Sooner Than Expected, Rate Hikes Should Be Considered Promptly

According to a report by Jinse Finance, Bank of Japan Policy Board member Naoki Tamura stated in a speech to business leaders in Fukushima Prefecture on Wednesday that the Bank of Japan should consider further interest rate hikes as soon as possible, as inflation may reach its target earlier than expected. He said, “My basic view is that the central bank will, without any preconceived analysis, data, or information, raise policy rates in a timely and appropriate manner and adjust the degree of monetary easing based on improvements in economic activity and prices, neither too hastily nor too slowly.” He believes that inflation may rise faster than the Bank of Japan anticipates, forcing the central bank to take decisive action amid global uncertainty.