What is BOJ board member Kazuyuki Masu's position on the timing of the next interest rate hike, and under what condition does he believe it should occur?

Kazuyuki Masu stated that 'if data do not indicate clear signs of an economic downturn, I believe it is desirable to raise rates at the earliest stage possible.' While he judged in April that 'the situation did not warrant a hasty hike' and voted to keep rates steady, his remarks signal openness to joining dissenters in calling for a rate increase at the BOJ's June meeting—provided there is no clear evidence of an economic slowdown.

Why does Masu argue that timely rate hikes are critical now, and what inflation target is the BOJ aiming to sustain?

Masu argues that Japan has 'clearly entered an inflationary phase' as 'the behaviour that took root during the period of deflation is now being unentrenched,' making it vital to ensure 'through timely and appropriate policy rate hikes, the underlying inflation rate does not exceed 2%.' This reflects the BOJ's official inflation target, which it aims to durably achieve after exiting its decade-long massive stimulus in 2024 and raising rates several times—including in December—on the view that Japan is on the cusp of sustainably hitting that 2% goal.

BOJ Board Member Masu Calls for Early Rate Hike

May 13, 2026

BOJ board member Kazuyuki Masu urges an early interest rate hike, citing inflationary pressures from the Iran war-driven energy shock and rising fuel and chemical goods prices. He stresses timely policy adjustments to control underlying inflation.

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BOJ Board Member Masu Calls for Early Rate Hike

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