Bank of Japan reportedly to implement more rate hikes, with some officials believing the neutral interest rate is above 1%

Jinse Finance reported, citing informed sources, that Bank of Japan officials believe that before the current rate hike cycle ends, interest rates are likely to rise above 0.75%, indicating that there may be more rate hikes after the expected increase next week. These sources said that officials believe that even if rates are raised to 0.75%, the Bank of Japan still has not reached the neutral rate level. Some officials already consider 1% to still be below the neutral rate. According to the sources, even if the Bank of Japan updates its neutral rate estimate based on the latest data, it does not currently believe that the range will narrow significantly. The Bank of Japan currently estimates the nominal neutral rate range to be about 1% to 2.5%. The sources added that Bank of Japan officials believe there may be errors in both the upper and lower limits of this range itself.