Bank of Japan Policy Board member Kazuyuki Masu said he is "convinced" of the need for an interest rate hike if inflation accelerates, citing a 7% rise in corporate goods prices and increasing cost pressures.
On underlying inflation, Masu said although the underlying inflation rate remains below 2%, "it is very close" to the 2% target, according to a speech on Thursday.
The BOJ, which raised its benchmark rate to a 31-year high of 1.0% in June, holds its next policy meeting on Sept. 17-18.
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