Bank of Japan official: Will continue raising interest rates based on economic and price conditions

The committee members reached a consensus on the timing and pace of monetary policy adjustments: it is necessary to balance two key dimensions, closely monitor the impact of the Middle East conflict on the Japanese economy, and assess the likelihood of the baseline economic outlook being realized. Note: The Bank of Japan kept the policy rate unchanged in April, but carried out a rate hike operation during this week’s monetary policy meeting. Some members indicated that if there is a continued risk of rising oil prices, it would be appropriate to raise rates to a neutral level as soon as possible to prevent core inflation from persistently deviating above a reasonable range. One member suggested that the current policy rate remains far from the neutral rate, and that the central bank should continue to raise rates at intervals of several months.