BoJ's Tamura: Bank Should Raise Rates Near Neutral as Inflation Risks Overshooting
Bank of Japan board member Naoki Tamura stated that Japan has already met the 2% inflation target and the central bank must raise rates to near neutral to prevent inflation from exceeding expectations.
USDJPY
Bank of Japan (BoJ) board member Naoki Tamura said on Thursday that Japan has already achieved the BoJ's 2% inflation goal. He argued that the central bank should raise interest rates to a neutral level to keep underlying inflation from overshooting.
Tamura's remarks signal a hawkish tilt within the BoJ, reinforcing expectations that the bank may continue normalizing policy. Markets now watch for the next meeting for potential rate action.
The yen strengthened on the comments, with USDJPY moving lower.
Source: FXStreet Forex News