BOJ Official Signals Faster Rate Hikes If Inflation Risks Increase, Eyes 2% Neutral Rate

According to Naoki Tamura, an executive board member of the Bank of Japan, on June 25, the central bank should not hesitate to accelerate its pace of rate hikes or implement larger increases if upside risks to inflation strengthen further. Tamura expects the BOJ to conduct rate increases every few months until the policy rate reaches approximately 2%, viewed as the neutral level.
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