BoJ board member Masu says underlying inflation is gradually approaching 2%, but currently does not expect it to rise substantially above that level; when asked about 50bps hike, said the bank should proceed cautiously with hikes

It is essential to stabilize the underlying inflation trend at around 2%. Central bank will closely assess the yen’s appreciation and rising crude oil and global food prices at next week’s policy meeting. Next week’s rate decision remains uncertain and future policy moves will be decided on a meeting-by-meeting basis. Have emergency market operations as a tool, but that is only saved for exceptional moves in JGB markets.