Bank of Japan board member Kazushige Masu said at a press conference in Fukui City on the 10th that regarding an additional rate hike, "after examining and verifying exchange rates, crude oil prices and all other factors in detail, we will thoroughly discuss it at the next meeting." The next monetary policy meeting is scheduled for the 17th and 18th of this month. The BOJ last raised rates in June, and having so far hiked at a pace of roughly once every six months, Masu noted that "even if it is September, if you call it an acceleration, then an acceleration it is." In a speech the same day, Masu said the underlying rate of inflation excluding temporary factors "remains below 2 percent, but is quite close to it," and at the press conference he said, "I am not currently worried about a large, rapid rise," adding that "once it reaches 2 percent, the biggest challenge will be to stabilize it smoothly." Regarding U.S. Treasury Secretary Bessent's repeated remarks urging the BOJ to raise rates, he explained that "as our country's central bank, we will make appropriate judgments on adjustments," stressing the BOJ's stance of keeping its policy conduct independent.
BOJ's Masu signals a possible additional rate hike at the September meeting, pushing JGB yields higher.
