BOJ Member Seeks to Raise Rates Further for Policy Normalization

Fukui, Sept. 10 (Jiji Press)--The Bank of Japan needs to raise interest rates further to "complete the normalization of monetary policy," Kazuyuki Masu, a member of the BOJ's Policy Board, said Thursday.

Underlying inflation, which excludes temporary factors, remains below 2 pct but is "very close" to the BOJ's 2 pct target, he said in a speech in the central Japan city of Fukui.

Noting that financial conditions in Japan remain accommodative, Masu said that the central bank could be forced to "implement a rapid policy interest rate hike" if inflation accelerates.

He also stressed that the situation in which inflation-adjusted real interest rates are negative "should be addressed as soon as possible."

The impact of the yen's depreciation on prices "has become "more pronounced than in the past and warrants close attention," he said.

[Copyright The Jiji Press, Ltd.]