FX.co ★ BoJ Tamura Urges Timely Rate Hikes as Inflation May Hit Target Early

Naoki Tamura, a board member of the Bank of Japan, has advocated for the central bank to consider further interest-rate increases promptly, as inflation might hit the 2% target sooner than anticipated. Speaking to business leaders in Fukushima, Tamura highlighted the likelihood of achieving the price stability target ahead of schedule. He urged for policy adjustments to be made “in a timely and appropriate manner... without haste or delay,” driven by data and developments in economic activity and prices. Tamura also cautioned that inflation might surpass BoJ forecasts, necessitating decisive measures despite global uncertainties. Known for his hawkish perspective, Tamura had previously dissented at the board's meeting on June 16–17, opposing the plan to reduce the pace of bond purchase reductions.