Overview
- Board member Naoki Tamura said consumer prices are stabilizing near 2% rather than fading.
- He noted Japan’s output gap has turned positive, indicating capacity pressures on prices.
- Tamura warned persistent food inflation and renewed yen weakness pose upside risks via import costs.
- He described financial conditions as still accommodative with the policy rate at 0.75% after December’s hike.
- He put the neutral rate at at least around 1% and stressed data-dependent steps to ensure a smooth landing.