BoJ's Tamura says Japan has already met BoJ's 2% inflation goal and must increase rates close to neutral to prevent inflation from exceeding the target

Says: BoJ needs to gauge where the neutral rate lies by assessing how each rate hike affects the economy, prices and financial developments. Important for FX rates to move in a way reflecting fundamentals. FX rates move not just by policy stance of central banks, but by other factors. FX moves are important factors affecting Japan's economy and prices. FX moves have a bigger impact on inflation than in the past due to change in corporate price-setting behaviour. If risk of inflation overshoot materialises, we may need to accelerate the pace of rate hikes. Whether the BoJ raises rates once every three months or four months would depend on how the economy and prices and markets respond to each rate hike.