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Bank of Japan Policy Board Member: Cautious, gradual interest rate hikes may be needed at some stage in the future.

36 minutes ago

Bank of Japan (BOJ) Policy Board member Ichiro Asada stated that he is not completely opposed to interest rate hikes, adding that a gradual rate increase may be required at some stage in the future, though the pace must be carefully managed. He noted Japan’s inflation rate has hit around 2%, and there is little merit in further pushing up prices; the neutral interest rate is likely slightly higher than the BOJ’s current policy rate. Asada also said he is not currently proposing a rate cut, and aims to comprehensively evaluate upside and downside economic risks alongside financial conditions at each monetary policy meeting before making policy decisions.

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