Bank of Japan Board Member Comments on Neutral Interest Rate

Naoki Tamura, a member of the Bank of Japan's Policy Board, stated that he has consistently believed Japan's neutral interest rate is at least around 1%. According to Jin10, Tamura emphasized that different measurement methods can lead to varying estimates of this rate. His comments highlight ongoing discussions about Japan's monetary policy and the challenges in determining the appropriate interest rate level. The neutral interest rate is a key factor in shaping economic policy, as it influences inflation and economic growth.