Former BOJ Policy Board Member: BOJ may raise interest rates twice before the end of March.

Former Bank of Japan Policy Board Member Makoto Sakurai said on Friday that after a landmark shift in policy focus and increasing inflation risks, the Bank of Japan may complete two rate hikes before the end of the current fiscal year. The central bank raised short-term policy rates to 1% on Tuesday, hitting a 31-year high, citing the need to prevent core inflation from exceeding the 2% target. This reason for the rate hike is very different from previous explanations, as the central bank had previously stated that rate hikes were to show confidence in sustained achievement of the 2% inflation target. Sakurai stated in an interview, "This is a major turning point in monetary policy, signaling a clear shift in focus towards curbing inflation for the Bank of Japan." He added, "This move reflects the central bank's increasing concerns about inflation risks, and will greatly impact future rate hike paths." Sakurai is currently maintaining close communication with current central bank policy officials.