The Bank of Japan is reportedly set to raise interest rates further, with some officials believing the neutral interest rate is above 1%.

Odaily Planet Daily reports that insiders revealed that Bank of Japan officials believe that before the end of this rate hike cycle, rates are likely to rise above 0.75%, indicating that there may be more rate hikes after next week’s increase. These individuals stated that officials believe that even if rates are raised to 0.75%, the Bank of Japan has not yet reached the neutral interest rate level. Some officials have already considered that 1% is still below the neutral rate level. Insiders said that 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. Currently, the Bank of Japan’s estimate of the nominal neutral interest rate range is about 1% to 2.5%. Insiders said that Bank of Japan officials believe that there may also be errors in the upper and lower limits of this range. (Jin10)