BOJ official: BOJ sees underlying inflation gradually heading towards 2%

Bank of Japan Policy Head Kazuhiro Masaki speaking in parliament

• BOJ sees underlying inflation gradually heading toward 2%
• Price rises post-pandemic have been driven mostly by cost-push factors, such as rising import costs from weak yen
• Expect cost-push inflation pressure to gradually dissipate ahead
• Services prices rising moderately
• BOJ will keep raising interest rates if underlying inflation accelerates towards 2% target as projected
• Underlying inflation is accelerating towards 2% but is still below that level now
• BOJ must support economic activity with accommodative monetary conditions

This article was written by Eamonn Sheridan at www.forexlive.com.