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
