BOJ’s Tamura: It is difficult to specify the terminal rate at this point

• Will try to find where the neutral rate should be while examining how the economy responds to rate hikes
• Not saying that neutral rate should be 1%
• Upward risks for prices is gradually increasing
• No preset idea about the pace of rate hikes

His earlier comments were about cementing the idea of raising rates to 1% before the end of the current fiscal year. He’s adding on that now in saying that it doesn’t mean 1% will be the neutral rate. USD/JPY is still down slightly on the day, lower by 0.2% to 152.35 currently. The break lower in Treasury yields yesterday is the more interesting driver at the moment in my view.

This article was written by Justin Low at www.forexlive.com.