BoJ’s Masu says central bank is not behind the curve in dealing with inflation
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Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Friday that central bank is not behind the curve in dealing with inflation. Masu further stated that BoJ shouldn’t raise rates too quickly in a way that derails Japan’s economic recovery. Key quotes BoJ is not behind the curve in dealing with inflation. Not thinking of particular pace of rate hike. It’s obvious BoJ shouldn’t raise rates too quickly in a way that derails Japan’s economic recovery. I’m not saying that food prices are rising in a way that needs immediate policy action. Don’t have specific timeframe in mind on how soon boj should raise rates to levels deemed neutral to economy, BoJ should scrutinise economic developments and guide policy in an appropriate way so that underlying inflation moves around 2%. It would be wrong to have preset idea in mind on how soon to raise rates. If there is sufficient data that convinces us we should act, then we should act without hesitation. Market reaction As of writing, the USD/JPY pair is down 0.21% on the day at 156.70. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield…
Filed under: News - @ February 6, 2026 6:26 am